Eastern Europe: Risk Perceptions vs Economic Fundamentals - PDF

Price: £960.00

Ask a question about this product

Investors are struggling to value the debt of European countries given uncertainty about contagion and economic growth potential.  Today, the challenge for investors is to compare countries across Europe based on their fundamental economic strengths and weaknesses and identify the core factors that drive economic resilience. In particular, they struggle to apply appropriate risk premia to government bonds of core eurozone, eurozone periphery, and Eastern Europe, as the rule of thumb that developing countries should pay higher risk premia not longer holds true. This raises serious questions about debt pricing in Eastern Europe. Eastern Europe: Risk Perceptions versus Economic Fundamentals addresses this question by analysing Eastern European countries and identifying those that have disparities between economic fundamentals and market risk perceptions, as reflected in their sovereign debt yields and CDS spreads. It also provides insight into the fundamental economic strengths of individual countries and the region as a whole in a wider European perspective. The following Eastern European countries are covered:
  • Bulgaria;
  • Czech Republic;
  • Estonia;
  • Hungary;
  • Latvia;
  • Lithuania;
  • Poland;
  • Romania;
  • Slovakia; and
  • Slovenia.

This analysis is driven by our unique proprietary model, Quantitative Country Analytics (QCA). QCA is the most in-depth tool for comparative, comprehensive economic analysis among those available on the market at the moment. It currently covers 174 countries in the world with equal depth. QCA's single score is driven by 17 critical factors, characterising the economic, political and socio-demographic situation in a country, which in turn create three pillars: external adjustment capacity, institutional robustness and medium-term growth potential. The 17 factors are composed of 62 sub-factors. This enables us to rank countries' relative risk and attractiveness based on both their overall score and their pillar scores.

QCA enables investment managers to improve risk adjusted returns by identifying mispricing of assets based on country risk and growth prospects.  Our extensive back-testing has shown that QCA-driven portfolios consistently outperform the market by avoiding risk and identifying underappreciated opportunities. Use of QCA facilitates profitable risk taking and helps demonstrate a sophisticated and prudential approach to risk taking to investors, shareholders and regulators.

Format PDF

Liquidity Strategies for FIs and Corporates - printSisson


Shopping Basket

Your Cart is currently empty.

Currency Selector