European sovereigns swap with companies

The cost of insuring against the default of a sovereign is more expensive in many cases than insuring against the default of a company

Which is more risky? Option 1: A collection of 125 European companies exposed to the risk of bankruptcy, profit warnings, mergers and acquisitions and cut-throat competition. Option 2: France, the fifth-largest economy in the world.

According to the credit default swap market, the answer is France. That is a worrying signal.

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