Trader12
2022-07-31

#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:

📍 Government bond yields (the weighted average yield of the country's dollar bonds)

📍 Credit default swap Spread (CDS) for 5 years

Government spending on debt interest payments (as a percentage of GDP)

📍 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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