Global Sovereign Debt Credit Risk Report - Q1 2013
Apr Tue 16 2013 at 8.48 am
S&P Capital IQ is pleased to release the Global Sovereign Debt Credit Risk Report (formerly CMA) for 1st Quarter 2013. The paper focuses on changes in the risk profile of sovereign debt issuers, with the intention to identify key trends and drivers of change.
A last minute bail out of Cyprus prevented a default as upfront prices fluctuated 7pts towards the end of the quarter. However, default risks remain high at 70% over five years, according to the report.
Meanwhile, spreads in the UK widened to 55bps after the much anticipated credit rating downgrade, but finished the quarter strongly at 45bps.
Elsewhere, US CDS spreads remain unchanged on the quarter, while the market continues to assess the impact of when the US ceases the $85bn monthly bond repurchase program.