Country Risk: A Mid-year Update for 2022

As investors and businesses look beyond domestic markets, assessing the riskiness of the countries that they invest in, and charging an appropriate amount for that risk has become a key component of investing. In this session, I provide my semi-annual update on country risk, by first looking at the drivers of country risk (political freedom, legal rights, exposure to violence, extent of corruption) and then examining sovereign default risk (ratings and CDS) and equity risk premiums in markets. On every dimension, it has been an eventful six months as risk premiums have risen across the board, and coupled with higher riskfree rates (across most currencies) have pushed up the median costs of capital for US and global companies by 3-3.5%, almost unprecedented for a half year period.
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/blog/CountryRisk2022.pdf
Blog Post: https://aswathdamodaran.blogspot.com/2022/07/country-risk-2022-mid-year-update.html
Paper (for download; it is boring and long, but it covers all the bases): https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4161010
Datasets
1. Corruption, Legal Rights and Peace Scores, by country: https://www.stern.nyu.edu/~adamodar/pc/blog/CountryRiskJuly22.xlsx
2. Default spreads and Equity Risk Premiums, by country: https://www.stern.nyu.edu/~adamodar/pc/datasets/ctrypremJuly22.xlsx

Видео Country Risk: A Mid-year Update for 2022 канала Aswath Damodaran