Japan banks CDS

Japanese banking institutions have seen their credit default swap prices fall somewhat as European concerns ease.

According to Nikkei,

The cost of insuring against default by Japanese financial institutions is declining as concern about financial conditions in Europe abates.

The CDS premium for Bank of Tokyo-Mitsubishi UFJ was recently at 1.45%, down 11 basis points from year-end, according to financial data provider Markit Group Ltd. The bank is a unit of Mitsubishi UFJ Financial Group Inc. (8306).

For Sumitomo Mitsui Banking Corp., a unit of Sumitomo Mitsui Financial Group Inc. (8316), the spread was down 14 basis points at 1.63%.

Japanese banks’ CDS premiums started inching up around November. Escalating fundraising difficulties at European financial institutions had sparked concern that Japanese banks would also suffer if the global financial system fell into crisis.