Japanese bank credit spreads tighten on central bank bailout

The Bank of Japan said on Wednesday it would buy stocks from the banks to help boost share prices ahead of the fiscal mid-year ending September 30. The announcement came as a relief, pushing Tokyo’s stock market and Japanese bank shares higher. In the credit protection market, Sumitomo Mitsui Banking Corp (SMBC) was trading at a spread of about 100 basis points on Friday, down from 115bp a week ago. UFJ Bank’s credit default swap spread narrowed to 145-150bp from 169bp last week, and Mizuho