CDS market: still wary of top banks

A lot has been made of the mini-rally in bank stocks, but it's looking more and more like a dead-cat bounce rather than anything meaningful. For another look at how market participants view top financial firms, check out Credit Derivatives Research's Counterparty Risk Index, which averages CDS spreads of 15 major credit derivatives dealers--basically the top banks. As of Tuesday, reports the Financial Times, the index stood at 155.75 basis points. That's 2.3 points more than its previous close. This is weakest sentiment since at least March, when Bear Stearns imploded. Merrill Lynch was the worst performer; its CDS spreads soared 46 basis points. Interestingly, U.S. banks are judged to be three times as risky as their European counterparts. 

For more:
- here's the FT item

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