Sovereign Debt Default Risk
[While] the average country has seen its default risk decline by about 5% this year [25 countries’ CDS prices went up; 32 countries saw their CDS prices go down]… the US has seen its default risk rise the 8th most (i.e. 19.28%) out of the 57 countries listed. [Let’s take a look at the details.] Words: 403
So says an article” at www.bespokeinvest.com/ which Lorimer Wilson, editor of www.munKNEE.com , has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. The article goes on to say:
Sovereign Debt Credit Default Swap Prices and YTD % Change by Country
Below is a table showing default risk as measured by 5-year credit default swap (CDS) prices for 57 countries worldwide [in which you will note that:]
- Default risk for Greece is by far the highest of any country shown with 5-year CDS prices up 40% so far in 2011…
- Out of the 57 countries listed Norway is ranked as the country believed by investors to be least at risk of default.
- [Canada, by its absence from the list, is assumed to be so low in default risk that its 5-year CDS price is neglibile.]
- While US default risk is still low relative to the rest of the world, the YTD % change for the price of its CDS is up 19.28%.
The Ups and Downs of Default Risk by Country YTD
Below are tables showing the countries where default risk has risen and fallen in 2011. [While] the average country has seen its default risk decline by about 5% this year [25 countries’ CDS prices went up; 32 countries saw their CDS prices go down]… the US has seen its default risk rise the 8th most (i.e. 19.28%) out of the 57 countries listed. On the positive side, the Netherlands has seen its default risk fall the most of any country so far in 2011 with a decline of 52.05%.
- ” Be Forewarned: Worldwide Systemic Financial Risk is Rising Rapidly – Again” http://www.munknee.com/2011/05/be-forewarned-worldwide-systemic-financial-risk-is-rising-rapidly-again/
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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