Tuesday , 26 September 2017


U.S. Debt Default Risk is Up Dramatically YTD

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%.


*http://seekingalpha.com/article/272096-sovereign-debt-default-risk?source=email_macro_view

Related Posts:

  1. ” 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/

Editor’s Note:

  • 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.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
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