One Year Ago In Derivatives Week

Five-year credit-default swap spreads on Bank of America gapped out to a new high of 217.5 basis points amid fears that the bank would be nationalized. [The worries proved unfounded. In December, the bank paid back the USD45 billion it had received from the Troubled Asset Relief Program. At press time, five-year CDS on the bank were at 131.1bp, tighter than that of Goldman Sachs at 133.1bp, according to CMA DataVision.]