This chart of CDS on Western European debt vs. emerging market debt is pretty self-explanatory and remarkable.
For the first time, Western European sovereign debt is deemed to be riskier, and though it’s easy to talk about the decline of developed markets, and the robustness of emerging ones, bear in mind that much of this perceived risk is due to the structural flaws of the euro, and not necessarily because the countries are riskier.
And in fact there are huge risks in emerging markets, the latest ructions out of Vietnam being notable.
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