A survey by TD Securities claims to have found that Canada is considered the most solvent country in the world. Pretty cool, eh? From The Globe & Mail:
Chief strategist Eric Lascelles examined credit default swap data for 25 countries, and found markets believe there is only the slimmest of chances that Canada would ever default on its obligations.
“Canada is now regarded as quite possibly the world's safest sovereign country in terms of the solvency of the country's government,” Mr. Lascelles said in a research note.
“Since it is the government that is generally called upon to fix major problems that crop up, this suggests that the market does not expect major problems out of the broader Canadian economy and financial sector.”
Sovereign credit default swaps are the market's way of putting a number on the chances of a government defaulting on its debt. Canada's five-year CDS levels are at 13 basis points, which is less than half the rating given to second-place Germany, at 33 points. The United States is at 38 points, while Spain is at 93 and Korea is at 561.
And to think all of us, even Stephen Harper, owe it all to Mr. Dithers, Paul Martin.