Bank of America’s Transforming World Atlas has loads of lovely infographics in it, but one of the most colourful is a map of the world’s riskiest sovereign debt. The map uses the prices of credit default swaps, which are derivatives that pay out if a borrower defaults. Here’s the map: Sovereign credit default swaps have been used as a type of insurance against sovereign governments not paying back the money they owe. Like any insurance product, the more expensive it is the more likely the event you’re insuring against will happen soon. Venezuelan debt is by far the most …read more
Source: Business Insider
