CDS spreads stable after quiet weekend
The cost of credit protection on eurozone financial institutions remained stable this morning, with recent government interventions boosting market confidence.
Five year credit default swaps (CDSs) on Lloyds TSB – set to form Lloyds Banking Group by January 2009 with the planned acquisition of HBOS – moved in to 64.2bp at 1030 GMT this morning from 65bp at close of trading on Friday.
CDS spreads on HBOS widened 1bp to 97.7bp, according to credit information specialist CMA DataVision. As part of the deal, both banks plan to raise a combined £13 billion from investors, with an additional £4 billion of preference shares to be purchased by the UK
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