Few interesting risk mappings for December 2012 from BBVA Research:
Per BBVA, through Q4 2012:
"The Western Central Banks “Put” drives financial tensions back to normal in both US and European
Markets. But some segments still “under pressure” (banks and interest rates). Emerging Markets among the most benefited markets during the quarter. The Central Banks actions leads EM Europe below the neutral area thanks to the diminishing Euro convertibility risk. Asian and to a lesser extent Latam financial pressure enter also in the very low tension area."
My view - don't be complacent on Latin America and some Asian markets - keep an eye out for Grey Swans (see my note here).
A nice chart showing easing of pressures in the sovereign CDS markets:
Ratings agencies moves summary:
Here's an interesting risk radar map:
See the next post for more from BBVA Research...