Political Risk and National Debt Markets in Advanced Economies

The importance of the sovereign bonds within the investment alternatives all over the world, encourages to broaden examination of political instability in context of debt markets. Problem of political risk is mainly scrutinized with reference to developing and emerging economies on microeconomic level, however, it is worth separating that issue from political threat for debt markets. Moreover academics face problem with finding universal indicant to measure political factors responsible for national solvency on debt markets. Considerations were based on literature’s review, results of empirical studies as well as accessible statistical data. In effect, political risk as a potential hazard for debt markets in advanced economies was underlined. There was also suggested that persistent, adverse tendencies in political risk may negatively influence country’s solvency on debt markets.