CDS, the insurance premium demanded by the market to cover the risk of a country defaulting on its debt. When risk perception increases, CDS rises; when it decreases, it falls.


You can roughly think of this as similar to the life insurance policy imposed when you want to take out a loan from a bank. If there is a risk related to your age or health condition, the insurance premium also increases. Just like when something is wrong in the country, the CDS increases.
In fact, this can also be considered as one of the parameters indicating the country's reputation. If it is rising, it means you are doing something that damages your reputation.
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