Here Are 16 American States Where Investors Are Preparing For Default

While the world watches Europe's periphery struggle with sovereign debt issues, state CDS prices have continued to rise.

This chart from Bespoke Investment Group points out just where your state is in terms of the cost to insure its debt. The higher the cost, the more likely it defaults, or so the market would indicate.

Illinois has seen the largest surge in 2010, with its CDS price rising by 97%, according to Bespoke.

From Bespoke Investment Group:

Bespoke Investment Group

Now check out CMA datavision's probabilities for U.S. state defaults >