In May 2008, a team of analysts sovereign debt by Moody’s was whether to downgrade the country’s sovereign long-term debt from Aaa to Aa1 or less decide. Investor sentiment towards Iceland had changed radically in March, and the Moody team was afraid that the situation could spiral out of control. Moody knew the team that carry traders Iceland increased vulnerability to a crisis of confidence, because they quickly liquidate their stocks at the first sign of distress. The jump … Read more »

In May 2008, a team of analysts sovereign debt by Moody’s was whether to downgrade the country’s sovereign long-term debt from Aaa to Aa1 or less decide. Investor sentiment towards Iceland had changed radically in March, and the Moody team was afraid that the situation could spiral out of control. Moody knew the team that carry traders Iceland increased vulnerability to a crisis of confidence, because they quickly liquidate their stocks at the first sign of distress. The jump in the Icelandic krona since the beginning of 2008, the Icelandic population forced to confront a decision: would the accession to the European Union (EU) for the protection of Iceland moody swings in investor sentiment? What, if any, Iceland should do to avoid a future crisis
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from
Aldo Musacchio
Source: Harvard Business School
24 pages.
Release Date: 29 August 2008. Prod #: 709011-PDF-ENG
Iceland (A) HBR case solution

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