Country default risk
From Bespoke Investment Group site,
“Greece has really distinguished itself this week as the country that is most at risk of default. It has separated from the pack when looking at five-year credit default swap prices (CDS). As shown in the table below, Greek the five-year CDS is now at 2,236.70 basis points, which means it costs $2,236.70 per year to insure $10,000 worth of Greek debt for five years. Talk about a high premium!
“The second riskiest country in terms of default risk is Venezuela, and its CDS price is currently half that of Greece!”
Categories: Africa / Middle East, Asia, Eastern Europe, Investment Wisdom, Latin America, North America, Statistics, Western Europe