Belgium seen as more risky than Brazil now

Published: September 22, 2010 - 15:09
This article received :  4 Comments

Tensions are back again. While Greek spreads are reaching pre-bailout highs, also other euro countries are experiencing rising spreads on their bonds and CDS-premiums.

Banking problems are resurfacing (Ireland with Anglo Irish and Greece with NBG), and as a result, the focus is on the risk of souvereign problems. The Irish debt is "only" 80% of GDP, but they have a lofty 200% of GDP guarantees for their banking sector.

By the way: the Belgian CDS-risk premium has been rising lately. We are now seen as more risky than Brazil. And that is not so irrational if you compare both countries.

CDS-premiums Source: Datastream   Schermafbeelding 2010-09-09 om 08.14.22

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4 Comments

  1. Jan Holvoet 

    On 9 Sep, 2010

    10 jaarsrente in Brazilië is boven de 11%, dus ga je gang...
    1. Geert 

      On 9 Sep, 2010

      Inderdaad: risk / return = !
      1. Gerard 

        On 9 Sep, 2010

        2 dingen die botsen: enerzijds deflatie: lage rentes... anderzijds: Belgie: hoog risico: hoge rentes... Kunnen we daaruit concluderen dat de markt toch ook wel schrik heeft dat het richting deflatie gaat? Of heeft men een te positieve kijk op de Belgische situatie?
    1. Guido Dendoven 

      On 10 Sep, 2010

      De vraag is hoeveel Reals je binnen tien jaar met je Euros gaat kunnen kopen?

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