Haircut fears push up bank CDS prices

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The iTraxx credit index for senior European financial firms has experienced its sharpest two-day rise for more than six months, as bank bondholders brace themselves for the imminent release of the European Union's (EU) consultation paper on burden-sharing.

Spreads on the index widened from 168 basis points at close of play on January 4 to 180bp yesterday and 191bp at 13:00 today, according to financial data provider Markit. This marks its highest point since June 8, 2010. The increase comes as M

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