CDSs on airlines widen on swine flu fears
The cost of credit protection on major airlines increased this morning, as fears mounted that tourism would decline due to the swine flu outbreak in Mexico.
Five-year senior credit default swap (CDS) spreads referencing British Airways jumped from 696.9 basis points at yesterday's close to 731bp as of 11:30am BST, according to data provided by credit information specialist CMA Datavision. German airline Lufthansa saw its CDSs move out from 155bp to 164.9bp. CDSs on Air France widened from 416.8bp to 438.3bp.
The flu outbreak also drove sovereign CDSs on Mexico wider; they were trading at 320bp today, out from 296.7bp at the end of Friday.
UK banks saw
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