Below is a Credit Suisse table ranking countries by perceived country risk. Usual suspects Iceland and Greece unsurprisingly make the top of the list. Yet what struck us was how badly the U.S. ranked. According to Credit Suisse, it has more sovereign risk than Kazakhstan even.
It appears that U.S. government debt and private sector credit are what hurtled the U.S. past Kazakhstan. Credit Suisse’s table makes it seem as if U.S. credit default swap (CDS) spreads are far too low in relation to other nations. If the ranking is valid, of course:
(Original Credit Suisse table via Alphaville)