Credit Default Swap General Description of Research Object

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f. Current Account Balance

The average value of current account balance variable is 2.018 percent, with the standard deviation of 4.79. The lowest value is - 11 percent, while the highest value is 15.7 percent. Table 4.2 CDS Spreads in bps No Countries Name 2009 2010 2011 2012 2013 1 China 73.24 67.58 147.17 66.31 80 2 Germany 26.33 59.31 102.17 41.8 25.49 3 Hong Kong 47.76 44.66 89.255 45.61 47.03 4 Indonesia 190.35 129.02 208.0 136 233 5 Ireland 158.43 608.65 724.365 220 120 6 Italy 109.3 239.87 484.35 298 168.325 7 Japan 68.1 72 143.215 81.71 40 8 Malaysia 89.48 72.46 146.29 77.86 109.33 9 Philippines 169.24 126.24 192.08 105.69 114 10 Portugal 91.61 500.97 1081.87 442.94 351.695 11 South Korea 85.41 93.88 160.83 68 65.835 12 Spain 113.58 350 380.35 229.5 153.83 13 Thailand 96.28 98.5 182 94.5 128.66 14 Vietnam 235.07 307.26 409.4 211.305 265.99 Source: data processed Table 4.2 shows that the lowest CDS spreads produced by Germany in 2013, that is 25.49 bps. Germany has the lowest value of CDS spreads because, Germany has contribute to give bailout to the Greece and other Eurozone countries when it surged by the crisis. Thus, it makes the investors have a good conviction toward its ability to meets its obligation and pay interest. 59 Meanwhile, the highest CDS spreads value produced by Portugal in 2011 that is 1081.87 bps. Portugal has the highest value of CDS spreads because, at the time, Portugal was affected by the crisis that faced by Greece. Since Portugal and Greece are the member of Eurozone, thus, Portugal has a great potential to affected by the crisis as an impact of Greece debt crisis. It makes the investors have a less conviction toward the Portugal ’s ability to pay the interest and principals, thus it makes its CDS spreads increase sharply in 2011. Table 4.3 GDP Growth in percent No Countries Name 2009 2010 2011 2012 2013 1 China 9.2 10.4 9.3 7.7 7.7 2 Germany -5.1 4 3.3 0.7 0.4 3 Hong Kong -2.5 6.8 4.8 1.5 2.9 4 Indonesia 4.6 6.2 6.5 6.3 5.8 5 Ireland -6.4 -1.1 2.2 0.2 -0.3 6 Italy -5.5 1.7 0.4 -2.4 -1.9 7 Japan -5.5 4.7 -0.5 1.4 1.5 8 Malaysia -1.5 7.4 5.1 5.6 4.7 9 Philippines 1.1 7.6 3.6 6.8 7.2 10 Portugal -2.9 1.9 -1.3 -3.2 -1.4 11 South Korea 0.7 6.5 3.7 2.3 3.0 12 Spain -3.8 -0.2 0.1 -1.6 -1.2 13 Thailand -2.3 7.8 0.1 7.7 1.8 14 Vietnam 5.4 6.4 6.2 5.2 5.4 Source: data processed