NEW YORK--(BUSINESS WIRE)--The widening of global credit default swap (CDS) spreads continues, with European sovereigns once again driving the movement, according to Fitch Solutions in its latest Risk and Performance Monitor.
The lack of resolution regarding Greece's sovereign debt drove European sovereign CDS 17% wider. 'Increasing market concern over Italy's debt sent CDS 38% wider while credit protection on Portugal moved out 35%,' said Author and Director Diana Allmendinger.
Sovereign CDS concerns bled into European financials, which sold off 6%. Not surprisingly, the most pronounced spread widening came from Portuguese (CDS 20% wider), Greek (17%) and Italian (15%) banks. 'Notable underperformers included Piraeus Bank, Banco Espirito Santo and Banco Comercial Portugues,' said Allmendinger.
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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.
Applicable Criteria and Related Research: Fitch Solutions￢ﾀﾙ Risk and Performance Monitor
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=645509