FSA decision prompts tightening for insurers’ credit spreads

Traders said clients were selling protection on insurance companies including Dexia, Axa and Prudential, following the decision late last Friday. Five-year senior protection for benchmark names Allianz and Axa are now both priced at around 85-90bp-mid. They both traded wider than 100bp last week as investors bought-up protection driven by fears of insurers' equity losses.

The subsequent equity rally on Monday kept credit default spreads tight at the start of the week. But as weakness re-entered

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here