With the level of concern mounting about the increase of debt to GDP ratios in countries like Greece and Dubai, many are questioning the stability and safety factor of government debt issued by the developed and developing countries. But, what current government debt carries the highest risk of default? CMA DataVission has put together a ‘soverign risk report‘ that ranks the world’s most volatile sovereign debt issuers. The countries are ranked by their cumulative probability of default (CPD), which is a measure that quantifies the probability of a country being unable to honor its debt obligations over a given time period. So, if a country has a 20% CPD rating for its five-year credit default swaps (CDS) contracts, the market believes this debt has a two-in-ten chance of defaulting in the next five years.
Click ahead to find out the world’s riskiest sovereign debt issuers!
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