The credit quality of sovereign debt is the subject of current scrutiny and debate. The business of government is a complex one with multiple objectives and indeed philosophies. Some believe that governments are inherently inefficient and therefore should have their mandate clearly defined and limited. Others see government as an arbiter that corrects market imperfections.

Its not fundamentals that are driving equity markets and responsible for the current weakness. Fundamentals were bound to weaken once the first round of inventory restocking had taken place and the benefits of cost cutting had been realized.

Debt levels as a percentage of GDP:

Having attended various lectures by academics, regulators, central bankers and investors in the opening weeks of 2010, and being surprised at the diversity of views among the experts, I thought to look back at the 2008 credit crisis in a bit more detail to see what I missed. I tried to look back at the

  One way of measuring correlations between managers is to look at cross sectional standard deviations of returns, i.e. the dispersion of returns, between different hedge fund strategies. Here is what raw dispersion looks like across the HFRI strategy indices: Disperson is fairly stable in a range except for the 1999/200 equity bubble bursting and the