HVB protection surges on downgrade

The cost of senior credit protection for the five-year debt of Germany's HypoVereinsbank (HVB) has surged nearly 30 basis points this week following a two-notch downgrade of its unsecured deposit and debt rating by Moody’s late on Wednesday.

Moody’s downgraded HVB to A3 stable from A1. Senior credit protection for HVB widened 5bp to 105bp-mid following the announcement, with subordinate protection widening 15bp to 210bp-mid. During the course of the week, the cost of protection continued to widen, reaching levels of 128bp-mid for senior and 260bp-mid for subordinate today. The cost of protection for other European banks remained stable. Five-year senior protection for Deutsche Bank and Dresdner Bank are currently trading at 40bp-mid

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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