In 2012, investors got very comfortable with sovereign debt


2012 has been a year in which investors have become much more comfortable with sovereign debt.  Below is a snapshot showing credit default swap (CDS) prices for the sovereign debt of 42 countries around the world.  As shown, only one country saw its default risk increase in 2012 — Argentina.  Six countries saw default risk fall by more than 70%, and they are all European countries.  And while the US still has low default risk compared to the rest of the world, it only fell 16% in 2012, which ranks it fourth worst on the list.  The Fiscal Cliff looms large.

cds by country

Data and table: Bespoke Investment Group

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Bespoke Investment Group
Bespoke Investment Group
Bespoke Investment Group LLC was formed in May 2007 by Paul Hickey and Justin Walters. Visit: http://www.bespokeinvest.com/