"On average, CDS on European banks have come in 12% over the past month, outpacing the broader region, for which spreads moved 6% tighter over the same time period," said
Banks domiciled in
"Based on our CDS Indices, the market is no longer singling out the European financials industry as it had in recent years, with the spread differential between the financials and corporates indices less than 10 basis points, compared to 60 basis points a year ago," added Allmendinger.
Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings' Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time.
Additional information about Fitch Solutions' products is available at www.fitchsolutions.com
Fitch Solutions, a division of the
Fitch Ratings and Fitch Solutions are part of the
Source: Fitch Solutions
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