The Wall Street Journal’s “Heard on the Street” column yesterday made an interesting comparison between sovereign bonds and corporate bonds. It pointed out that although in ordinary times, developed country sovereign debt is typically considered safer than corporate bonds of the same jurisdiction – the risk free rate of return, and the sovereign power to be able to tax, etc. – in extraordinary times, sovereign debt presents political risks not present in corporate bonds.
via opiniojuris.org
Good short summary of the issues.
