UK CDS spreads up

Five-year senior credit default swap (CDS) spreads referencing the Royal Bank of Scotland tightened to 119.7 basis points at 09:30am London time from 121bp at the close of trading on November 28. The bank, which is now majority owned by the government after receiving a £20 billion bailout last week, confirmed today it would not repossess the properties of customers who fall behind on mortgage payments for at least six months.The cost of protection on Lloyds TSB - now facing a legal challenge