Financials Offer More Spread, Less Risk

Lewis, Janet
January 2006
Investment Dealers' Digest;1/9/2006, Vol. 72 Issue 1, p11
Trade Publication
The article reports on a recent survey which shows that credit spreads for financial institutions in the U.S. are out of kilter with their default experiences and rating movements over the past 20-odd years. The study further says that although financial names default or are downgraded less often than nonfinancials, their spreads are in fact wider in the credit default swap market. The survey compares the credit ratings of financial institutions and nonfinancial corporates versus their default and downgrade experiences from 1983 to 2004.


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