Counterparty risk: StanChart tightens 12.3%

In partnership with S&P Global Market Intelligence, CT provides a regular snapshot of the most recent movements in bank credit default swap spreads (CDS).

We have chosen five-year spreads as the benchmark as they are generally considered the most liquid and therefore offer more accurate barometer of risk appetite.

We believe this should be a welcome addition, although CDS levels are not in any way a perfect guide to monitor credit risk. Click here for CT's research on the benefits and pitfalls of using CDS as a measure.