EMERGING MARKETS: Measuring the world's instability.(Lehman Brothers, Eurasia Group risk index)(Brief Article)

Pensions & Investments, November, 2001 by Feinberg, Phyllis

With governments in many emerging markets growing increasingly unstable, it's hard for investors to figure out where their money will be safe. Now Lehman Brothers and the Eurasia Group, both of New York, have come up with an index that measures political and economic risks in emerging market countries.

The Lehman Eurasia Group Stability index generates monthly country ratings for four distinct categories of risk - political, economic, security and social structures, such as strikes, riots and social tensions. Tina M. Nelson, director of the joint venture formed to produce the index, said ,``the goal is to help investors and analysts sift through all the information - the noise - coming from these countries.'' The analysis incorporates 20 different...

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