Yesterday we highlighted credit default swap prices for major banks and brokers around the world. Below we provide the same default risk levels for individual countries. These prices represent the cost per year to insure $10,000 of debt for five years. We also show what the prices were at the start of the year. Of the G-8 countries, Russia has by far the highest default risk with a CDS price of $523. That's higher than any of the struggling banks we highlighted yesterday. Japan, France, the US, and Germany have the lowest default risk of the group of countries, but they have all spiked more than 200% this year. Argentina is in the most trouble, with a cost of $4,453 per year to insure just $10,000 of debt. Venezuela is the second worst at $2,016, followed by Lebanon, Egypt and Indonesia.
Any reason why Canada not on this list?
Posted by: dj | November 07, 2008 at 09:58 AM
Canadian CDS prices are apparently in the teens according to TD Economics.
Posted by: Don | November 07, 2008 at 03:05 PM
is that correct? $22,000 to insure $10,000 of argentinian debt? sounds a little crazy.
Posted by: Dave | November 09, 2008 at 02:19 AM
How Germany comes after US ?
Posted by: Test | November 10, 2008 at 03:28 AM
The prevailing valuation technique in Emerging Markets adds the country risk to the discount rate. This practice ignores the term structure of default risk.
Posted by: accounting homework help | July 04, 2010 at 02:23 AM
The Banking Act of 1933 was a law that established the Federal Deposit Insurance Corporation (FDIC) in the United States and introduced banking reforms, some of which were designed to control speculation.
Posted by: balance sheet homework help | July 16, 2010 at 04:54 AM
Don't know what is wrong what is rite but i know that every one has there own point of view and same goes to this one
Posted by: Send flowers to Korea | July 20, 2010 at 05:55 AM