CDS pricing points to rising risk premium on Goldman's debt

05/4/2010 | Reuters · Financial Times (tiered subscription model)

For the first time since October 2007, the cost of insuring Goldman Sachs' debt against default is as high as it is for Morgan Stanley. Before the U.S. Securities and Exchange Commission announced its lawsuit against Goldman, credit default swaps on the company were priced at about 90 basis points a year. CDS coverage on Goldman and Morgan Stanley debt traded at about 162 basis points Monday, according to Markit Intraday.

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Reuters · Financial Times (tiered subscription model)

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