From the Globe asnd Mail
Friday, November 25, 2011 5:37 PM EST
DAVID BERMAN
Bespoke Investment Group has an interesting chart, listing the default risk of 44 countries based on current five-year credit default swap prices -- or the cost for investors to insure against government default. A few things jump out. First, Norway tops the list as the least risky country, underlining how solid its economy is. As well, the United States is a close second. For all the concerns about its economy and the health of the dollar, it appears that it is still the best place for risk-averse investors.
The list also makes it clear what the sovereign-debt crisis has done to some countries. Greece is at the bottom of the list, with an absurdly high CDS price – miles ahead of places like Venezuela, Argentina and Portugal. But Italy has fallen below places like Spain and Egypt, in terms of its rising CDS prices. And look at France: It is now closing in on Russia, Turkey and Poland.
