Encyclopedia > Sovereign bond

Article Content

Sovereign bond

A sovereign bond is a bond issued by a national government as opposed to a municipal bond which is issued by a subdivision of a national government.

Sovereign bonds present unique issues. Unlike a corporation or even a municipal subdivision, a nation cannot file for bankruptcy. Hence situations when a nation defaults can be extremely complicated.

All Wikipedia text is available under the terms of the GNU Free Documentation License

Search Encyclopedia

Search over one million articles, find something about almost anything!

Featured Article

Quadratic formula

... impossible to divide by it.) The symbol <math>\pm \sqrt {b^2-4ac}</math> in the formula should be understood as "either of those element(s) of the field ...