Delay to Japanese bad-loan proposals stymies bank swaps trading

Prime minister Junichiro Koizumi continued to back Heizo Takenaka, economy minister and head of the Financial Services Agency, who is behind the proposals despite widespread opposition from hardline conservatives.

But the lack of concrete measures has caused market participants to adopt a wait-and-see stance, with the cost of credit protection on bank debt widening 10 basis points from last week.

Credit protection on Bank of Tokyo-Mitsubishi five-year, senior debt was quoted today at bid-offe