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Monday
Mar142011

Japan Default Risk

DateMonday, March 14, 2011 at 06:25PM

Below is a chart of 5-year credit default swap prices for Japanese sovereign debt.  As shown, there has been a small increase in default risk in the days since the devastating earthquake and tsunami hit, but default risk is still below levels it was at in May 2010 and February 2009. 

At the moment, it costs $95 per year to insure $10,000 worth of Japanese sovereign debt for five years.  As shown in the table of CDS prices below, Japan remains at the low end of default risk compared to other countries around the globe.  With the resilient country fighting to get back on track, investors don't appear to be worried about Japan having financial problems.  

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  • Response
    Response: Daalders Dagelijkse Links (week 11)
    at Robeco Connect on March 16, 2011
    Lukas Daalder, strateeg van het Financial Markets Research-team van Robeco, publiceert regelmatig een selectie links die elk een eigen visie op de macro-economische situatie van dat moment geven.De weergegeven links zijn afkomstig van publieke websites,

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