CDSs widen on UK banks

Credit derivatives referencing UK banks continued to widen this morning, following a week in which Lloyds TSB announced it will absorb a £10 billion loss due to its merger with HBOS.

Lloyds TSB - which announced the potential losses on Friday, February 13 - saw its five-year senior credit default swap (CDS) spreads move to 144.7 basis points as of 10.15 GMT this morning, up from 142.bp when markets opened, according to data from credit information specialist CMA Datavision. After its announcement on Friday, CDSs referencing Lloyds TSB jumped 16% from Thursday's close of 122.4bp.

CDSs referencing Barclays widened to 188.2bp this morning from 188bp on Friday. CDSs on the bank

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