What would you do if a law that enabled your investment to operate successfully abroad had just been changed, and your business could no longer operate profitably there? Imagine exporting goods to a government buyer only to discover after the fact that your home country, or the United Nations,...

Past cycles of sovereign lending and default suggest that debt crises will recur at some point. This book shows why investors should reckon with similar credit events in the future. Surveying the sovereign bond market, the author provides investors with a useful toolkit for analyzing sovereign...

We analyze the transmission of the financial crisis of 2007 to 2009 to 415 country-industry equity portfolios. We use a factor model to predict crisis returns, defining unexplained increases in factor loadings and residual correlations as indicative of contagion. While we find evidence of...