Term
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Definition
| default where the default is caused by the country of the borrower |
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Term
| Why is country risk modelling challenging? |
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Definition
| due to the complex relationships among the relevant variables and the lack of reliable and timely data |
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Term
| What 3 risk types does country risk include? |
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Definition
| Sovereign risk, political risk, transfer risk |
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Term
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Definition
| the risk that a foreign government will limit or prevent domestic borrowers from repaying debt. |
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Term
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Definition
| relationship between the constitution of a country and the means by which it is enforced. |
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