CMA Issues Its Q4 Global Sovereign Debt Credit Risk Report
All you wanted to know about why the world is bankrupt in many pretty charts.
Top 5 riskest countries:
Top 10 least risky sovereigns:
Most deteriorating countries in the quarter:
Most improved countries in the quarter:
- Abu Dhabi
Greece, widening 32% in Q4, tips Venezuela off the top spot as the world’s most risky sovereign.
- Ireland enters the top five following the bail out the its banking system and a subsequent widening of 35%.
- Concerns that Spain has some similarities to Ireland – a debt-driven property boom bust – helped drive the cost of protection wider by 50% and into the top 10 most risky. China’s support for Spain both in terms of long-term debt holding and imports will help support one of the most important economies in the region.
- Portugal also widened – by a more modest 22% in Q4 – but the cost of protection in Portuguese banks remains high.
- Argentina tightened nearly 20% this quarter as it pledges to repay the Paris Club of investors.
- Ukraine is the best yearly performer, tightening 59% on the year.
- Iraq remains very illiquid – see special section on liquidity changes.
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