Bank Swaps Led by Citigroup Drop Below Europe: Credit Markets
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U.S. bank bonds are about the safest on record relative to debt from European financial institutions as a growing economy allows Citigroup Inc. to wean itself off government support and a fiscal crisis roils Europe.
The average cost of protecting the notes of the six biggest U.S. banks including Citigroup and JPMorgan Chase & Co. against default fell yesterday to 12.16 basis points below the Markit iTraxx Financial Index of 25 European banks and insurers. Credit-default swaps on U.S. banks were 341 basis points higher than their European counterparts at the height of the credit crisis in October 2008.