CDSs on US banks widen
The cost of credit protection on US banks increased this morning, having fallen - in some cases by as much as 50 basis points - on Friday after the announcement of the US government's stress-test results last week.
Five-year senior credit default swap (CDS) spreads referencing Citi -which will have to raise a further $5.5 billion in capital, according to the results - pushed out from yesterday's close of 349bp to 370.7bp as of 3:35pm BST, according to data provided by credit information specialist CMA Datavision.
Bank of America - which will require an additional $33.9 billion - saw its CDSs widen to 191.6bp from 177.6bp. CDSs on Wells Fargo - which needs $13.7 billion - moved out from 136.8bp to 145.2bp
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