Give sovereigns a credit analysis, urges Northern Trust

The sovereign debt crisis among developed economies and the loss of America's AAA credit rating by Standard & Poor's has forced real-money investors to reassess the way they analyse risks in government bonds. Northern Trust Global Investments (NTGI) argues that sovereign debt should be assessed more like corporate debt. It has developed an internal methodology that separates developed-market debt into three buckets: core/prime, investment grade and high yield, says Wayne Bower…