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BANK OF AMERICA’S Transforming World Atlas has loads of lovely infographics in it, but one of the most colourful is a map of the world’s riskiest sovereign debt.
The map uses the prices of credit-default swaps, which are derivatives that pay out if a borrower defaults.
Here’s the map:
Sovereign credit-default swaps have been used as a type of insurance against sovereign governments not paying back the money they owe. As with any insurance product, the more expensive it is, the more likely the event you’re insuring against will happen soon.
Venezuelan debt is by far the most risky, costing twice as much as Greek or Ukrainian debt to insure.
The graphic also shows just how far Spain and Ireland have come. The market thinks their debt is pretty risk-free, with lower CDS spreads than Italy or Portugal.
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Not a chance that Ireland would default on tits debt in the near future. We’ve come through a horrific recession and never really looked like defaulting. The smart money was being put on our government bonds when they were at 8%
you said tits
Really?
http://www.theworldnewsjournal.com/markets/2015/08/15/The-Next-Financial-Disaster-Starts-Here.php
http://www.goldcore.com/us/gold-blog/bail-ins-coming-eu-gives-countries-two-months-to-adopt-rules/
http://theeconomiccollapseblog.com/archives/why-is-the-eu-forcing-european-nations-to-adopt-bail-in-legislation-by-the-end-of-the-summer
@Michael
If you “invested in Gold” in 2010 you would have bought in at $1800 which today trades at $1100 ?… & no dividends or interest payments.
And in the post Mad Max world better of with some boxes of tinned fish or petrol
Of course we do pretty well. Shur weren’t they guaranteed??
We’re lucky this is the business section so you won’t see too many anti government folks here. This is another sign the country is back on track.
*getting back on track I mean. But we have a lot of work to do. plus get rid of water charges. It’s a debt we shouldn’t have!
Other Katie will you continue the struggle when the journal moderators consign me to the scrap heap?
Keep talking Katie and you might really believe it. You are sooo intelligent you wont have to put up with the people who are on the IW site is that what you mean. You are the ignorant one not them.
I feel like I’ve fallen from a Business Insider article into an episode of Inception. O_O
other Katie ? oh ye Lindsay price !
A study done by Bank of America. Aren’t the U.S. Like 17 trillion in debt. And the federal reserve just print bonds like it’s going out of fashion. I don’t believe a word of it
One of the banks that hid loses then shifted burden onto the taxpayer
A 17+ trillion economy though, with low unemployment, strong growth and falling debt.
Nearly 20 trillion in debt now and it is only going one direction under Obama who has made absolutely no attempt to tackle the deficit and has spent more money than all his predecessors combined.
infidel all republican candidates offered tax cuts, more war in Syria and more defense spending. so the only alternative is worse
Median household income is down across the board, the middle class is being killed under this clown. Race relations are at an all time low, the Middle East is worse now than it’s ever been, Russia has annexed part of Ukraine and Obama is doing deals with terror states like Iran and Cuba. Obama has been a total disaster and is comfortably the worst president in history.
You want to blame obama for race relations ? race relations were a lot worse but now everyone has a camera and the country not seems mature enough to discuss it openly. median household income was down due to the recession although I’m not a democratic fan either. I’d vote for Bernie sanders if he gets in but if you wish for Donald Trump or jeb bush you better get your head examined
The worst president in history? I’m laughing at your ignorance of history!
Race relations are worse now than anytime in recent memory and statistically conditions have actually gotten worse for blacks under the first black president. America needs a CEO not another failed career politician like Sanders. Sanders hasn’t a hope of getting elected he is a proud socialist for Christ sakes. I’d like to see terror states like Iran or Cuba try flex their muscles with Trump in the Oval Office. Putin wouldn’t be able to push him around and bully him as he’s done with Obama.
Alright I’m done, chap just endorsed Donald Trump
Says the Bernie Sanders fan! Put down Das Kapital and take off the Che Guevera t-shirt pal. Try living in the real world.
If Trump was the president of America, Putin would bomb America, and no one would blame him. Some of us hate people with ugly hair.
but if your debt interest rate is less than your growth rate it’s irrelevant. one set of 10 year govt bonds gets replaced by new set when it’s time for payment. so in order to fuel growth at 4% you need to borrow at 2% that’s a great deal. govt debt never really gets repaid.
Infidel I’m with Kevin on this. As for median income being down it is difficult to raise median income when a Republican dominated Congress insists on tax cuts for the 1% at the expense of everyone else.
@Infidel – Higgins in an indoctrinated Barack Hussein Obot. It does not matter to him that Obama has quadrupled the American national debt since he came to office. Neither does it matter to him that administration insider Michael Flynn has now come out saying that he PERSONALLY witnessed the Obama administration’s CONSCIOUS decision to support Muslim brotherhood and all the other gangsters that brought us Isis. Higgins will still blindly believe that Hussein Obama can do no wrong. That’s how brainwashing works.
Spain with 50% unemployment. how far they’ve come indeed
under 25 unemployment that is*
Spain does an aging population; 15-24 years: 9.6% vs 25-54 years: 45.9% vs 55-64 years: 11.4%. so 50% of that age group, whilst clearly a problem, isn’t that big a percentage of those of working age.
CDS were the real reason for bailouts… It’s bondholder insurance against being burned.
If they didn’t bailout the likes of Greece directly, they would have had to bailout the likes of AIG and RBS which had massive CDS on the books or let them go under.
They have since deleveraged from them… Which is why Non-functioning economies such as Greece can be let go bankrupt in 2015 without bringing down every bank in Europe, when they couldn’t be in 2008.
It reflects the ECB and their buying of bonds and the markets knowing that for the Euro to survive that the ECB will buy, buy, buy.
Look at the yields in Europe.
World Finance and especially in the west still remains deformed.
Slowdowns are globally cyclical and there will be one in years to come. Nothing in what the Eurozone states or the EU’s approach to debt leave me confident that they will be in a good place to weather that storm.
The figures as they stand now for much of Europe could not be more horrendous a starting place for the continent to deal with even a mild global slowdown.
The EU went for the approach that threw America in to a Depression in the 30s with austerity, no stimulus, demand destruction etc. America, this time did the opposite and now has 5% unemployment and strong, sustainable growth.
We are growing because we work hard but mostly because we trade with Britain and America who did not go down the financial puritan and cut to the bone lunacy that defines German economic orthodoxy and works for one country but not on a wider basis.
John everything you say is correct. The problem is that Germany is the home or Marx and not of Keynes – the Germans whilst being excellent engineers have no idea about running international economies. The Greek debt is a prime example of Teutonic economic ignorance.
I think you’ll find the German economy knows all about debt, defaulted after ww1, got a 50% write down after ww2. That’s after destroying its neighbouring economies, it then avails of restructuring by the “winners” and emerges as the European powerhouse. Germany knows what it’s doing.
Yeah I’m pretty sure they planned the failed conquest of Europe and then the world, the death of 2 generations and the partition of their own country as the foundation for them carrying the euro on thier backs. great plan.
Yawn.
It’s clearly a fake.
Your yawn is?
Lindsay will you and Katie Byrne just f*** off! Thanks
My yawn is a yawn. I don’t understand you? Supernova, that’s very rude.
The adults are trying to have a conversation
No, I made a comment and other people believed it was appropriate to insult me for no reason. There was no ongoing conversation.
What about the “grey”countries mostly on the African continent? No ranking ! Or Canada.
Canada is generally rated higher than the USA… Triple A vs. AA.
I’m assuming that a base point (bps) is 1/10th of a percent. The chart doesn’t say…
If so the cost of insuring Greek debt is 2.5 times its value and at that rate, I’m guessing it’s fictional. Meaning that’s what it, would be *if* you were to insure it because no one is.
In layman’s terms… Paying a €500 insurance premium, to cover the cost of a €200 item being stolen.
In other words .. We make great debt slaves nothing more ..
Why does the baby from the title picture not feature in the article at all?
That’s the head of financial ratings for Standard & Poors
Another choreographer’s effort to seek to make Ireland look good, yet conveniently missing the point http://thebottomline.ie/learning-from-icelands-banking-crisis/
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