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.