Published on Monday, September 23, 2019

Will sovereign risk premiums continue to fall?

In recent months we have witnessed a notable compression in sovereign CDS at the global level, in an economic scenario that is full of uncertainty and in which public debt is at an all-time high.

Key points

  • Key points:
  • The global median of sovereign CDS prices —which reflect the cost of securing against the risk of sovereign bond default— has reached its lowest level since the end of 2007.
  • Reaching levels not seen since 2009 in Greece and since mid-2008 in Portugal, before the sovereign debt crisis broke out in the EU.
  • Spain's sovereign CDS is also very low, but it had already reached similar levels in early 2018.

Documents to download


Has this information been useful?

New comment

Be the first one to add a comment.

Load more

You may also be interested in