Credit market buoyant in the face of stress tests

Five-year senior credit default swap (CDS) spreads referencing Bank of America tightened from 276.5 basis points at close of trading in New York yesterday to 245.2bp at 4:45pm BST today, according to data from credit information specialist CMA Datavision. Spreads also narrowed to 480.5bp from 564.3bp on Citi.

CDSs on other Wall Street firms also moved in today, with spreads on Goldman Sachs trading tighter at 219bp from 235.1bp, and those on Morgan Stanley moving to 324.3bp from 349.9bp. Credit protection also fell on Merrill Lynch, from 419.5bp to 379bp, while CDSs on Wells Fargo tightened to 201.2bp from 228.8bp.

Meanwhile, in the UK spreads on Lloyds Banking Group moved in to 171.4bp from 180bp while CDSs on Barclays narrowed to 166bp from 180bp.

Elsewhere in Europe, CDSs referencing French automaker Renault were trading tighter at 283.2bp from 319.3bp, while spreads on German rival BMW moved to 171.3bp from 190.7bp.

See also: CDS spreads widen on Korean financials

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