The latest quarterly sovereign risk report from CMA Datavision is out, and wouldn’t you know — Ireland and Portugal have cracked the top ten of the world’s riskiest sovereigns:
Meanwhile, the constituents of the top ten safest sovereigns stayed unchanged, but the US was the worst performer in the group, declining from third to ninth place:
For the second quarter running Portugal is in the top 5 worst performer table – its austerity measures has yet to sway the market in the right direction.
The rest of Europe remained fairly flat this quarter. The Ireland/Portugal situation has not been contagious – the Euro strengthening from 1.22 to 1.37 in the quarter indicating the FX market also believe the issues may not be widespread.
(source: CMA Sovereign Risk Report for Q3 2010)