"Historically, the trading of sovereign CDS was limited to emerging markets, reflecting the credit risk associated with the government debt of these countries. However, an actively traded CDS market in industrialised sovereigns has now emerged as a result of the financial crisis and growing investor concerns relating to the solvency of developed economies."
The best thing about this index is the fact that developed nations will be forced to acknowledge the structural deficiencies of their customary fiscal behavior. Ideally, this data would be streamed live into legislative body's voting chambers around the developed world, forcing these folks to at least recognize that profligacy has it's consequences.
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