RT Journal Article SR Electronic T1 Political Risk Insurance JF The Journal of Structured Finance FD Institutional Investor Journals SP 35 OP 42 DO 10.3905/jsf.2001.320250 VO 7 IS 2 A1 Daniel Galvao YR 2001 UL https://pm-research.com/content/7/2/35.abstract AB Although political risks might seem isolated and rare, their implications are quite alive and profound in the everyday social and economic activities of a nation. Assessing political risk goes beyond checking a country's sovereign rating and having good relations with incumbent political parties. Political risks also must be distinguished from security risks. Political risk insurance wrapping to place debt in the capital markets, and securitization of some of these structures, represents an important market innovation to help reduce funding costs and diversify funding sources. Being able to understand and negotiate appropriate policy language, as well as putting in place credible payment mechanisms, is the main challenge for a successful wrapping.