Credit Derivatives Research has warned in a report that while all eyes were on Greece’s financial problems, sovereign default concerns have been skyrocketing for some of world’s largest economies in just the last month.
“While headlines focused, rightly so, on the debacle that is Greece, it is much more of a systemic crisis in developed nations than most would like to believe,” said CDR chief strategist Tim Backshall in a note highlighting a surge in sovereign risk.
CDR’s Government Risk Index jumped almost 40 per cent in the last month, its highest since Feb. 25. The GRI is made up of credit default swaps on seven of the largest sovereign debt issuers: France, Germany, Italy, Japan, Spain, the U.K. and the U.S.A.
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