Try the new FT.com

November 3, 2008 6:32 pm

Sovereign debt hit by default fears

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

Sovereign credit default swaps are a form of insurance against a government defaulting on its debt. Their prices are usually steady in normal circumstances because the risk of a government’s debt is considered stable. But in recent months sovereign CDS spreads widened sharply, particularly in emerging markets, reflecting growing fears as government rescues of financial institutions became commonplace; several countries sought bail-outs from the International Monetary Fund, and many countries showed signs of economic slowdown.

In this chart we track the sovereign CDS spreads in 16 countries over the past two years.

Copyright The Financial Times Limited 2017. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments
SHARE THIS QUOTE