European sovereign debt could be set for a restructuring within the next two years, specifically on the eurozone fringe, according to Nobel Prize winning economist Robert Mundell.
Mundell labels the risks as follows, according to Bloomberg:
- Italy – 10%
- Spain – 20%
- Portugal – 20%
- Ireland – 20%
- Greece – 40%
Greece remains the market’s primary concern at the moment, and that is reflected in the country’s sovereign CDS.