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Beware the 3 Recovery 'Derailers'

The growing sovereign debt crisis that started in Greece is just one of three potential "derailers" of the global economic recovery, Harry Samuel, global co-head of fixed income and currencies and head of global Treasury services at RBC Capital Markets, told CNBC Thursday.

There are "three derailers, or possible derailers of global recovery. The first is unsustainably high levels of debt and now the emergence of a sovereign credit risk element into the global recovery," Samuel said.

"The second is the possible emergence of deflation and the third is short-term interest rates or even market interest rates rising too quickly," he added.

- Watch the full interview with Harry Samuel above.

If central banks decide to hike interest rates before the economic recovery has been fully established, or if markets push the cost of borrowing higher, it could choke off growth and make it too difficult to service debt, Samuel said.

Samuel recommends steering clear of countries that have unsustainably high levels of debt and investing in those that have "much more fiscally prudent policies to tackle deficits."

Samuel is positive on countries like Australia and Canada, whose currencies are underpinned by commodity-based revenues.