Eurozone crisis pushes US bank CDS to records

Eurozone crisis pushes US bank CDS to records
In Categories: Capital markets
Posted at 10:01 by Joseph Cotterill CDS on Bank of America has risen to a fresh record high of 495bps as US banks bear the brunt of fears over their exposure to a eurozone collapse, says the FT. Protection on European financials have also risen to new highs, with the Markit iTraxx Senior Financials reaching 341bps on Wednesday. Signs of broader stress across US financials have also been flagged by three-month dollar Libor, the interbank lending rate, rising to its highest setting since July 2010. The French president will press German Chancellor Angela Merkel to give more scope for the European Central Bank to intervene in sovereign debt markets at a mini-summit on Thursday, Reuters reports.