// TRADING TERMINOLOGY

What is Sovereign Debt?

Debt issued by a national government in a foreign currency, in order to finance the issuing country's growth and development.

In-Depth Explanation

Also known as "Government Bonds." The stability and credit rating of a country's sovereign debt directly affects its currency value.

Practical Example

"Investors are flocking to US Treasuries as a safe-haven asset, strengthening the Dollar."

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.

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