UK bank CDS spreads tighten further

Eight banks – including Barclays, Lloyds TSB, HBOS and Royal Bank of Scotland (RBS) - have confirmed their participation in the plan, which will see the government make £25 billion available to eligible firms in exchange for preferences shares or permanent interest bearing shares. A further £25 billion will be available as required. Following the announcement of the scheme yesterday morning, five year credit default swaps on the institutions involved tightened significantly. According to mar