Credit default swap spreads rate New Zealand sovereign debt as low risk
9th Nov 12, 9:29am
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Credit default swap spreads measure the risk associated with fixed interest bonds.
Markets track these spreads as indicators of the probability of default.
We track an index of these spreads for investment grade 5 year corporate debt issues in the US, in Europe, and in Australia as published by Markit in their iTraxx service.
There are a huge range of securities covered in the Markit service, including for sovereign bonds.
Today, the New Zealand Government 5 year CDS spread is 49.19 and that compares as follows:
| Government | CDS spreads |
| Sweden | 21.06 |
| Germany | 32.67 |
| US | 32.01 |
| Australia | 47.08 |
| New Zealand | 49.19 |
| China | 60.62 |
| France | 74.66 |
| Ireland | 196.71 |
| Spain | 335.00 |
| Portugal | 849.00 |
| Argentina | 1,649.00 |
Greece is not on this list because it defaulted in March 2012.
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