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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (9374)	5/8/2008 9:55:34 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Countrywide's credit default swaps widen 45 bps Tue May 6, 2008 8:59am EDT (Adds background, details) NEW YORK, May 6 (Reuters) - Countrywide Home Loans' credit *default swaps widened on Tuesday, a day after analysts raised doubts* about whether Bank of America (BAC.N: Quote, Profile, Research) will complete the acquisition of its parent, Countrywide Financial Corp (CFC.N: Quote, Profile, Research). Five-year credit default swaps on Countrywide Home Loans widened by 45 basis points to 315 basis points, according to data from Phoenix Partners Group. Though Bank of America said on Monday it remains committed to acquiring Countrywide, "there's not as much clarity as the market would like," said Scott MacDonald, head of research at Aladdin Capital in Stamford, Connecticut. "The other issue is you've got a lot of other bad financial news in the market, so I think it just compounds people's concerns," MacDonald said. In a sign that troubles in the financial sector are not over, Fannie Mae (FNM.N: Quote, Profile, Research) on Tuesday posted its third straight quarterly loss, while UBS (UBSN.VX: Quote, Profile, Research) said it was cutting 5,500 jobs and selling billions of dollars of assets in a bid to break free from the subprime mortgage crisis. (Reporting by Dena Aubin; Editing by James Dalgleish) (dena.aubin@thomsonreuters.com; +1-646-223-6325; Reuters Messaging: dena.aubin.reuters.com@reuters.net)) ------------------------------------- Fannie Mae's credit default swaps widen 16 pct Tue May 6, 2008 9:07am EDT NEW YORK, May 6 (Reuters) - The cost of protecting Fannie Mae's(FNM.N: Quote, Profile, Research) debt with credit default swaps rose about 16 percent on Tuesday after the provider of U.S. home financing posted its third straight quarterly loss. Five-year credit default swaps on Fannie Mae rose to about 50 basis points, or $50,000 a year to protect $10 million of debt, up from about 43 basis points on Monday, according to data from Markit Intraday. For details click on [ID:nL06921648]. (Reporting by Dena Aubin; Editing by Theodore d'Afflisio)