This is a really telling chart comparing the average PIIGS CDS to those of Romania and Hungary:
As Mahalanobis observes, it’s funny that up until recently, Hungary and Romania were seen as the huge trouble spots in Europe, and now they’re perceived as better credit risks than their Eurozone cousins.
Of course, they have the advantage of flexible currencies, which makes state finances that much easier. The difference you’re seeing in PIIGS vs. Hungary/Romania CDS come down, basically, to that fact.
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