Local banks’ CDSs chase Italy’s sovereign risk higher

The credit default swap (CDS) spreads of top domestic banks more than tripled over the first 30 days of Italy’s coronavirus pandemic, as the nationwide shutdown imperilled their loan books and reignited concerns over their massive government bond holdings.

Spreads surged from February 21, when the first cluster of Covid-19 cases was identified in Northern Italy, and peaked on March 18. During that period, the price of five-year credit protection on the senior debt of six of the country’s

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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