BES results hit Lusitano RMBS, but peripheral softening muted

By Bill Thornhill
31 Jul 2014

The release of Banco Espírito Santo’s results on Thursday led to a widening in its Lusitano RMBS programme, causing modest weakness across other peripheral ABS markets.

“BES made quite a few disclosures and has taken a kitchen sink approach to write-downs, which is probably the right thing to do,” an ABS portfolio manager told GlobalCapital on Thursday.

Portuguese five year CDS are 13bp wider on the day at 193bp, while Italian and Spanish CDS ...

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