S&P 100 Default Risk

Below we highlight the credit default swap prices of the S&P 100 stocks currently with the highest and lowest default risk.  As shown, General Motors and Ford clearly have the highest default risk based on their CDS prices.  Other names on the risky list include Clear Channel, AIG, Sprint, Lehman and International Paper. 

Names on the safest list are not surprising.  Consumer Staples giant Johnson&Johnson has the lowest risk of default in the S&P 100, followed by XOM, BAX, ABT and MRK.  If default risk starts rising for these firms, we're in real trouble.

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