Uneven day for Irish CDS spreads

Big CDS moves for Irish financials, but eurozone starts to stabilise

Despite being faced with the possibility of a majority takeover by the Irish government, five-year credit default swap (CDS) spreads on Allied Irish Bank (AIB) fell from a high of 1,200 basis points (bp) at 13:30 on November 24 to 1,127bp at close of play today. Meanwhile, spreads on Bank of Ireland widened from 756bp to 820.9bp in the same period, while credit protection on insurance company Irish Life & Permanent fell from 861.3bp to 850bp. Analysts at Credit Suisse estimated today that