The CDS (Credit Default Swap) spreads on the bonds of the Icelandic banks decreased considerably yesterday following a statement issued by Kaupthing Bank regarding its financing of the Dutch bank NIBC.
Thus the uncertainty of the position of Kaupthing and the influence of the credit crisis on the bank was eliminated, Morgunbladid reports.
Kaupthing’s CDS spreads dropped the most, by 72 points, at Glitnir Bank they dropped by 38 points and by eight points at Landsbanki Bank. The CDS spreads of the state’s bond decreased by six points.
The analyst departments of Landsbanki and Glitnir issued an announcement yesterday saying Kaupthing’s statement is very positive and proves how strong the bank’s position is.
The selected share index of the OMX Nordic Stock Exchange in Iceland increased by 1.33 percent yesterday, after a period of constant decline.
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