THE 20 RISKIEST COUNTRIES <http://pragcap.com/the-20-riskiest-countries>
11 December 2009 by TPC 3 Comments

Worries over sovereign credit have once again become a hot topic as concerns
over Dubai and Greece reignite credit crisis fears.  The problem of debt
continues to plague the global economy, but not all countries are at
risk<http://pragcap.com/must-read-did-the-nation-overdose-on-debt>.
In this world of global investing it’s easy to lump countries into regions –
Asia, Europe, emerging
markets<http://mail.google.com/mail/?ui=2&view=js&name=js&ver=GRUts-X5mqs.en.&am=!JjYx-7BZhZy5A3GC0fgGIk9WJx0K3gJYOUwiJ9e8y1CT7w#>,
developed market, etc.  But it’s not quite so black and white.  Within these
regions and markets we’ve recently learned that all emerging markets aren’t
the same just as all Asian markets aren’t the same.  Credit Suisse recently
ranked the riskiest nations based on a number of various factors including
government debt, private debt, potential growth, credit ratings and CDS
spread.  All of these add up to a risk score.

Many of the names at the top of the list are far from shocking, but
investors might be surprised to see how poorly the United States ranks in
the list.

Of course, there are two ways to view this list.  The bullish take and
bearish take.  Some will say these nations should be avoided.   On the other
hand, as Goldman says about Ireland, with risk comes potentially great
reward <http://pragcap.com/goldmans-top-trades-for-2010>.  I’ll let the
reader decide which approach to take….

[image: THE 20 RISKIEST
COUNTRIES]<http://pragcap.com/wp-content/uploads/2009/12/worst.PNG>

-- 
Best Regards,
Jay Shah, FRM

"Expect The Unexpected"
Blog: http://fuzylogix.blogspot.com/

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