#Greece, #Egypt,#Cyprus and #Turkey and #Ukraine are among the countries that have some of the world’s riskiest sovereign debts in the world:
Here is a look at the world’s riskiest sovereign debt in a map courtesy of Bank of America Merrill Lynch (BoA-ML) in a publication titled “Transforming World Atlas“.
The map by BoA-ML uses the prices of Credit-Default Swaps (CDS), which financial contracts which measure the risk of default on sovereign debt; the higher the spread, the greater the risk of default. These are derivatives that pay out if a borrower defaults.
Currently Venezuelan debt is by far the most risky, costing twice as much as Greek or Ukrainian debt to insure.