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Sovereign in sentence

1399 examples of Sovereign in a sentence

Of course, some believe that the Fed’s mass purchases of US debt poses an even bigger risk than Europe’s sovereign debt crisis.
This opt-in approach has some critics, but whether a program is categorized as “voluntary” or “mandatory” is beside the point, because international accords generally apply only to the sovereign countries that have decided to join them.
A “Grexit” would hit European banks that hold peripheral eurozone countries’ sovereign bonds.
Although the exposure of Chinese banks and financial institutions to eurozone sovereign and banking-sector assets is negligible, post-Grexit capital flight from risky markets could rival, or even surpass, that in the weeks following Lehman Brothers’ collapse in September 2008.
The euro’s rise will soon cause massive pain to the PIIGS, whose recessions will deepen, causing their sovereign risk to rise.
The Promise of Middle East Sovereign Wealth FundsDUBAI – A decade ago, sovereign wealth funds (SWFs) from the Middle East and North Africa (MENA) were the behemoths arriving on the global financial scene.
But most sovereign investors – which also include sizeable social security and pension funds, such as Saudi Arabia’s General Organization for Social Insurance and Public Pensions Agency – belie clear-cut labels.
Domestically, governments have largely abandoned their efforts to divide sovereign holdings into multiple “pockets” that reflected the funds’ diverse investment objectives and wider political considerations.
Consolidation of sovereign assets became the name of the game.
Sovereign investors, including SWFs, are the largest institutional investors in most Arab stock exchanges, holding over 40% of the total market capitalization in the region.
Tellingly, the mandate of the Turkish sovereign fund includes deepening the domestic capital market.
The result will be chain reactions similar to those seen in Europe’s sovereign-debt crisis, with a vicious circle of sovereign and bank debt leading to credit-rating downgrades and a sharp increase in bond yields.
Unfinished business includes a deposit-insurance scheme, as well as the creation of a senior tranche of safe sovereign assets, or eurozone-wide risk-free securities.
And, even there, they relied too heavily on self-policing by sovereign states.
The financial crisis forced sovereign states to substitute their own credit for the credit that had collapsed, and in Europe each state had to do so on its own, calling into question the creditworthiness of European government bonds.
But European decisions are still made by sovereign – and, more important, elected – national governments after endless deliberation.
But a decision to purchase sovereign bonds would also need to build on and factor in the institutional specificities of the euro area, including the limits set by the EU Treaty.
Then, earlier this month, amid slowing global growth, German economic indicators swooned, the risk premium on Greek sovereign bonds spiked, and ECB statistics showed that investors were pulling out of Italy.
The German Constitutional Court and the ECJ agree that the Lisbon Treaty prohibits the ECB from taking action to support a sovereign on the verge of insolvency; that is a fiscal and political issue.
The ECB’s argument that the OMT program’s primary purpose is to prevent a eurozone breakup is unconvincing to the German court, for only a nearly insolvent sovereign would risk breaking up the union.
Worse, the ECB has made an ambiguous promise to share losses with private creditors if a distressed sovereign does not eventually repay its debts.
These clauses became standard in sovereign bonds but were missing in those issued by Argentina before 2001, when the crisis hit.
Either super-CACs need to be designed and introduced (though it will take years to include them in all new bond contracts) or the international community may want to reconsider whether the 2002 IMF proposal for a formal bankruptcy court for sovereign borrowers should be resurrected.
But its leaders have never been able to integrate the tribes, the primary units of Yemen’s social structure, into the political system in a manner that generates their unequivocal acceptance of the sovereign state.
The risk premia on the sovereign debt of Greece, Ireland, and others have not diminished.
The European Commission’s claim that this slowdown reflects high sovereign-default risk, rather than fiscal consolidation, is belied by the UK, where the sovereign risk is deemed by markets to be virtually nonexistent.
If she had added that this is a crisis of both sovereign and bank debt, she would have been even more right.
This will require a range of measures, such as higher capital requirements on sovereign debt, real stress testing of banks, and enlarging the EFSF’s mandate so that it can also recapitalize banks, not just bail out countries.
Yields on the sovereign debt of the eurozone periphery’s weak economies have fallen sharply.
Europe’s economy remains shackled by three problems – sovereign debt, the euro, and wobbly banks – despite several new policy backstops: the European Stability Mechanism (ESM); the European Central Bank’s easy-money policies and holdings of sovereign debt; and the ECB’s takeover in November of supervision of the 130 or so largest pan-eurozone banks.
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