Sovereign Default
What is Sovereign Default? Sovereign default refers to the failure of the government of a sovereign entity to pay back principal and interest payments when they are due. The failure to repay debts owed to creditors may be accompanied by a government’s formal declaration that it will not pay owed debts, or it may sometimes...
Sovereign Fund of Brazil
What is the Sovereign Fund of Brazil? The Sovereign Fund of Brazil is the country’s government-controlled financial vehicle with different revenue sources, objectives, and investment approaches. It was established to insulate the country from short-term political pressure. Some of the Sovereign Fund of Brazil’s objectives were to fund projects of strategic interest to the country...
Sovereign Bond
What is a Sovereign Bond? A sovereign bond is a national government-issued debt security to finance spending programs, cover interests due, or repay old debts. As with other types of bonds, a sovereign bond promises to pay the buyer periodic interest and repay the face value on the maturity date. Its rating is associated with...
Sovereign Bond Yield
What is a Sovereign Bond Yield? A sovereign bond yield is an interest rate that a national government pays to service its outstanding bonds. As with corporate bonds, a sovereign bond yield depends on the inherent risk for the bondholders. However, the risk involves political risks, economic uncertainties, and exchange rates if the issued debt...
Sophisticated Investor
What is a Sophisticated Investor? A sophisticated investor is a term used to refer to an individual or a class of individuals with vast knowledge and experience in investment and business matters, alongside high net worth that allows them to go for high-risk investment opportunities. Under financial regulation laws, a sophisticated investor has a special...
