Sumitomo capital raising sparks Japanese bank spread widening

SMBC said earlier this week that it would raise ¥300 billion ($2.5 billion) via a convertible preference shares placement. Dealers said the cost of credit protection on SMBC’s senior debt widened 15bp to 95bp by Wednesday, but a general technical tightening on Japan’s credit default swap market helped keep SMBC’s spread from widening further. “Japanese credits are still on the tightening trend,” said one trader, pointing out that otherwise “banks could have widened much more”.

The cost of pro

To continue reading...

You need to sign in to use this feature. If you don’t have a 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 indvidual account here: