CDSs on European financials tighten after G-20

The cost of credit protection on European financial institutions fell this morning following the end of the Group of 20 leading economies (G-20) summit in London yesterday.

While a global economic stimulus package of $1.1 trillion stole the headlines, G-20 leaders also committed to a global regulatory framework, which would incorporate "regulated banks, shadow banks and private pools of capital". Among other issues, governments also looked to address pro-cyclicality, the securitisation of bad assets, remuneration practice, offshore tax havens and the alignment of global accounting standards.

The cost of credit protection on UK banks decreased this morning following