Sovereign default in developed economies could be "catastrophic" for investors, the report noted, as many traditionally have large holdings in government debt as a very low risk, relatively low return investment.
"I feel that over the last couple of years it's not only the quantifiables that have changed, it's also the realization that sovereign risk, and particularly developed market sovereign risk exists, because most developed world sovereign was basically treated as entirely risk free," Benjamin Brodsky, managing director in fixed income allocation at BlackRock, told CNBC.com. "With hindsight, we can say… that they have never been risk free, it's just that we have been living in a quiet time over the last 20 years." http://www.cnbc.com/id/43589467 '+'
