US financials move on Bernanke prediction
The cost of credit protection on US and European financials fell in intraday trading, following US Federal Reserve chairman Ben Bernanke's prediction yesterday that the US economy will "see recovery beginning next year".
Five-year senior credit default swap (CDS) spreads referencing Morgan Stanley tightened to 351.3 basis points at 14:15pm London time (10:15am New York time) from 389bp at the close of New York trading on Friday, according to data from credit information specialist CMA Datavision. CDSs on Goldman Sachs moved in to 249.9bp from 280.7bp.
Other US financials also fared well, with spreads on Citi trading tighter by 26.6bp at 506.9bp. The cost of credit protection narrowed 31.7bp on Bank of America to
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