Spanish banks prepare for refinancing risk as CDSs blow out

As markets continued to scrutinise southern European economies, the cost of credit protection on Spanish banks ballooned further today. Five-year credit default swaps referencing BBVA had risen to 242.6 basis points as of 15.50 London time, compared with 221.5bp at New York close yesterday, according to market information provider CMA DataVision. Credit spreads on Santander moved out from 207.3bp to 228.7bp over the same period, while CDSs referencing Spanish sovereign debt rose to 264.3bp from