s/249/modules/841/watch Bond Valuation Drivers Concepts L.P. rights reserved. O Based on the WCDM screen, how can we compare Italy and Japan in terms of overall default risk on their debt? Although Japan has over 3x the total debt of Italy, its cost of borrowing is much lower than Italy and it has a better credit rating so its credit default risk should be much lower than aly as supported by its CDS spread differential. Italy has over 3x the total debt of Japan and it has a better credit rating, so its credit default risk should be much higher as supported by its CDS spread differential. Previous Module: The Roots of the Bond Market Japan has over 3x the total debt of Italy, and a worse credit rating, so its credit default risk should be much higher as supported by its CDS spread differential. Fullscreen Go Back Click to open/close chart. Next Module: Central Bankers & Interest Rates SUBMIT About Us | Privacy Policy | Terms of Service Contact Us C Accident on Bykde... 40)