We estimate the pricing of sovereign risk for a large number of countries within and outside of Europe, before and … determinant of market-based sovereign risk, and find evidence of mispricing in PIIGS given current fiscal space and other current … Europe that, before the crisis (2007), were closest in terms of fiscal space (debt/tax). We find that PIIGS default risk is …

We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax; deficits/tax) and other … and economically important determinants of market-based sovereign risk. Although the explanatory power of fiscal space … emergence of TED spread as a key pricing factor. However, risk-pricing of the South-West Eurozone Periphery countries is not …