THE BEST performing sovereign credit default swap (CDS) markets over the first-quarter of this year are made up of Western nations, despite the rise of Eastern economies.
Austria was the top sovereign credit over the first quarter, with a five-year spread of 60 according to data provider Markit.
The nation has improved its credit position as a result of recovery in eastern European markets, where its banks have exposure.
Hungary and Chile were the only two emerging economies in the top ten best performing sovereigns over the first-quarter.
The weakest countries in the Eurozone are the struggling economies of Greece, Ireland and Portugal.
However, the sovereigns have seen spreads tighten significantly.
Credit analyst at Markit Gavan Nolan said: “Although political instability and high debt levels made [Portugal Greece and Ireland] vulnerable in the eyes of many investors, there was the counter-view that its deficit was relatively small and it was unlikely to have any difficulty in raising funds. The latter perspective seems to have won out.”