Fitch Solutions: Bank Spreads Resume Tightening; Global CDS In 5%

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Solutions' Report: Fitch Risk and Performance Monitor

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=535747

Credit default swap (CDS) spreads on financial institutions are tightening again, a possible sign that extended wider spread movement may have abated for the sector, according to Fitch Solutions in its latest weekly Risk and Performance Monitor (RPM).

Positive sentiment resonated in both the credit and equity markets last week with CDS spreads tightening for all sectors 5%, on average. Additionally, Morgan Stanley, Goldman Sachs, Citigroup, Bank of America and JPMorgan all saw more than 18% week-to-week tightening.

Banks are still pricing more than 8% wide of historical trading levels. '45 CDS IR downgrades among financials combined with an overall tightening trend signals that the recent re-pricing of banking sector risk is likely drawing to a close,' said Author and Managing Director Jonathan Di Giambattista.

Elsewhere, CDS on the oil and gas industry moved in line with the overall credit markets last week. Nevertheless, 'credit protection on oil and gas issuers continues to price, on average, 36% wide of historical trading levels,' said Di Giambattista.

The 'Fitch Risk and Performance Monitor', which is published on a weekly basis, is available by clicking on the above link.

Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content.

The Fitch Group also includes Fitch Ratings and Algorithmics, and is a majority-owned subsidiary of Fimalac, S.A. For additional information, please visit 'www.fitchsolutions.com'; 'www.fitchratings.com'; 'www.algorithmics.com'; and 'www.fimalac.com'

CONTACT:

Fitch Solutions, New York
Jonathan Di Giambattista, +1-212-908-0273
Diana Allmendinger, +1-212-908-9192
Julian Dennison, +44 020 7682 7480 (Media Relations, London)
julian.dennison@fitchratings.com
Sandro Scenga, +1-212-908-0278 (Media Relations, New York)
sandro.scenga@fitchratings.com

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