This paper was presented at the panel session entitled “Risk managers on default probability for prime sovereigns …”, held during the seminar on sovereign risk hosted by the BIS in January 2013.Full publication: "http …://ssrn.com/abstract=2420000" Sovereign Risk: A World Without Risk-Free Assets? …

This paper analyzes how sovereign risk affects government's ability to smooth domestic risk when policy tools … idiosyncratic risk, this distortion results in excessive consumption inequality in the cross-section of domestic agents and … excessive consumption volatility in the time series. Opening the capital account enables international risk sharing, but also …

, which are disproportionately affected by climate change, raises significant concerns. This study shows that sovereign risk …. Countries with elevated risk levels are disproportionately vulnerable to climate change compared to their lower-risk … vulnerability to climate change, in terms of sovereign risk, particularly for countries with low spreads and long-term debt …

Since World War II six risk-sharing institutions to stimulate foreign investment have been established by the U …