Country Default Risk

Includes: ACWI, EEM, EFA, VWO
by: Bespoke Investment Group

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.