Concerns about sovereign credits in 2007-08 were quickly replaced by concerns over sovereign debts in 2010-11. Sovereign creditor countries might have triggered political outcries in developed countries just before the global financial crisis broke out in 2008; sovereign debt problems in many developed countries placed the global economy in a vulnerable position. This paper examines what these developments tell us about the nature of sovereign wealth funds (SWFs), their performance and their impact on the changing global financial situation and, more importantly, international political economy.