Institutional investors

Sovereign Risk — Meaning and implications for investors May 2010 Clive Smith Portfolio Manager Jim Franks Director Investment Consulting While an appreciation of the risk inherent in corporate credit continues to be an important issue in managing fixed income portfolios, it is arguably last year's problem. In the period ahead, the key issue for bond portfolio construction will not be just the management of risk within corporate credits, but also the management of the risks inherent within the sovereign sector. In this research paper, Clive Smith and Jim Franks shed some light on the following topics:   Understanding two types of Sovereign Risk, Monitoring Sovereign Risk by using rating agency criteria, Monitoring Sovereign Risk by observing the credit default swaps (CDS) markets, Why investors should pay attention, and What Sovereign Risk means for investors. Request this research A note about our research Our proprietary research is made available to our institutional clients, and many of these published papers are available to other institutional investors as well. If you are not a Russell client, but are an institutional investor, we welcome you to request this research piece. We only require your contact information on a short request form. For more information about our research, please contact David or Gerry:     West Coast David Rothenberg Managing Director 866-926-5934 East Coast Gerry Lillis Director 866-459-4128 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. Date of first use: May 2010 USI-6893-05-12			Related information Request this research Printer friendly version of this page