CDSs on European financials widen
As equity markets tumbled this morning amid fears the US government would not extend further aid to the auto industry, the cost of credit protection on European banks rose.
Of the major UK banks, Royal Bank of Scotland was worst hit: five-year senior credit default swap (CDS) spreads referencing the bank moved out from Friday's close of 188.1 basis points to 198bp as of 11:00 BST, according to data provided by credit information specialist CMA Datavision.
Spreads referencing Barclays - which will not need to subscribe to the UK government's asset protection programme according to media reports - widened from 194.8bp to 203.5bp and CDSs on HSBC jumped to 146.6bp from
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