Dramatic CDS increase for Irish financials

Cost of debt protection rockets for Irish banks on fears of haircuts

After a dramatic few weeks, debt investors in Irish financials saw more tension this morning as credit default swap (CDS) spreads experienced an unprecedented rise. Debt protection costs for Anglo Irish Bank senior five-year bonds jumped to a new high for the second time this week, moving from 1,076 basis points at close of play on November 25 to 1,566bp at 13:30 on November 26, according to data provided by financial information provider Markit. During the same period, CDS spreads on Allied