#world #default
Countries with the highest risk of default in 2022
In May 2022, the South Asian country Sri Lanka defaulted on its debt for the first time. This not only affects Sri Lanka's economic future, but also raises an important question: which other countries are at risk of default?
To find out, Visualcapitalist used Bloomberg data to rank the countries with the highest risk of default.
Bloomberg's sovereign debt vulnerability rating is based on four main indicators:
đ Government bond yields (the weighted average yield of the country's dollar bonds)
đ Credit default swap Spread (CDS) for 5 years
Government spending on debt interest payments (as a percentage of GDP)
đ Public debt as a percentage of GDP
Credit default swaps (CDS) are a type of derivative instrument that provides a lender with insurance in case of default. The CDS seller represents a third party between the lender and the borrower.
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