Banks shift to CDS-based loan pricing in US

Banks are moving away from traditional methods of pricing loans and turning to the credit default swap market to price deals, it emerged this week. This has already affected 12 loans in the US, and has been used so far mainly for revolving credit facilities. The changes have not yet reached the European loan market, but bankers said discussions were under way. Read more on this story today at www.euroweek.com/loans, as well as a detailed report in EuroWeek on Friday.