Sovereign debt: Not all nations are created equal

Within the sovereign debt market, each country faces unique as well as common challenges. From quantitative easing to austerity programs, the credit crisis and global economic decline have sharply outlined the different approaches nations have used to manage their obligations. Sovereign debt issuers fall all along the risk-reward spectrum. Emerging markets often offer more attractive yields than established economies. But attractive yields are often a signal from the market, as…