IMF: Markets ‘Significantly Overestimate’ Risk of Sovereign Debt Default In Advanced Economies

Markets currently “significantly overestimate” the risk of sovereign debt default in the advanced economies, which is leading to higher risk premia on debt issuance, the IMF said in a report issued Wednesday. The key reason the default risk is overblown is that it would not solve the problem in advanced economies where the main challenge is the primary fiscal deficit, the IMF said. – iMarketNews

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