National governments issue debt securities known as sovereignbonds, which can be denominated in either local currency or globalreserve currencies, like the U.S. dollar or euro. First define whatthese bonds are. Why are these issued? Then discuss the issues thatcan arise when investors invest in these types of bonds. What arethe advantages and disadvantages of these bonds? Are there uniqueissues that can arise only with this type of bond? Would you investin sovereign bonds?
