Key Investment Factors - Asset Risk

Article Index

Asset Risk: High potential returns tempered by inherent risks

  • Evaluation of restructure history of defaulted sovereign loans
  • Continued heavy indebtedness of many emerging nations
  • Potential for political uncertainty
  • Imperfect fundamental data and research information
  • Non-standard and reduced disclosure requirements
  • Possible enforcement difficulties
  • Limited remedies in the event of default
  • Investors need to consider portfolio diversification and investment selectivity