Monday, August 8, 2011

Bank of America Leads Surge in Credit Swaps on Downgrade Concern Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/08/07/bloomberg1376-LPLZ796VDKI001-4F008PQK2DB3KFA63QP3KBEKAD.DTL#ixzz1UT2UrjQj

The cost to protect against a default by U.S. banks jumped after Standard & Poor's cut the AAA rating on the government's debt, raising investor concern that grades on lenders and other financial companies will be reduced.

Credit-default swaps on Bank of America Corp., the nation's biggest bank by assets, soared to the highest since May 2009, while contracts tied to Morgan Stanley debt increased the most since May 2010. Swaps on insurers Hartford Financial Services Group Inc., MetLife Inc. and Prudential Financial Inc. rose, while a benchmark gauge of corporate credit risk climbed to the highest since September 2010.

Read the rest of the article at the San Francisco

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