Risk-free sovereign debt does not exist

Greece is facing the prospect of using 7% of tax revenue to service debt to pretty much forever. This would make default look attractive at some point in time. Currently, countries are choosing to defaul on spending privileges rather than imposing pain on creditors. This will only be sustainable if the pain taken by voters is less than the costs of default. This will change sooner or later.

SIBOR (3-Month) Historical Rates

Recently, I have been trying to identify the best housing loan to take up. Many housing loans have their reference rates pegged against SIBOR 3-months. That is why I decided to take a look at the trend in the past 23 years to identify any possible problems such loans pose to home owners.

From the graph, we have identified that these rates have only been above 5% within certain short periods of time.