Credit Swaps on Bank of America, Goldman Sachs Jump on S&P Cut
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The cost to protect debt issued by U.S. banks from Bank of America Corp. to Goldman Sachs Group Inc. jumped after Standard & Poor’s lowered their long-term credit ratings as it revised criteria for the banking industry.
Credit-default swaps on Bank of America, which were little changed before the announcement, increased 16.9 basis points to 478.8 and those on its Merrill Lynch & Co. unit climbed 24.1 to 524.9 as of 4:46 p.m. in New York, according to data provider CMA. Contracts on Goldman Sachs increased 8 to 403.6.