Japanese banks get a breather but airlines continue to dip

The credit default swap spreads on Japan Airlines (JAL) and All Nippon Airways (ANA) were 40 to 50 basis points (bp) wider this week, after already rising by about 40bp last week to bid-offer spreads of 180-245bp.The cost of credit protection on Japanese banks, on the other hand, cheapened this week as the threat of nationalisation eased. The Financial Services Agency (FSA), Japan’s banking regulator, is to clarify later today the circumstances under which it would convert the preference sha