Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

sovereign bonds

Sovereign bonds are bonds issued by governments. They can be either local-currency-denominated or denominated in a foreign currency. Sovereign bonds and sovereign debt can be used interchangeably, but sovereign debt can also refer to the total outstanding stock of a country's government debt.

Example

The recent Greek crisis is one of too much sovereign debt.  With so much debt, under reasonable assumptions, this calls into question the government's ability and willingness to repay the loans. The...