Sovereign Default Unlikely in Eurozone

Greece, Portugal and Ireland are likely to avoid sovereign bond defaults according to Moody’s. An article in the Financial Times today says those countries have a solid investor base of banks and pension funds that will buy their government’s debt even in times of stress. Moody’s compared these three eurozone countries with 20 other sovereign defaults since 1997 – all of these happened in smaller, less wealthy countries without diversified economies to withstand financial shocks.