Accuracy | The downward trend in the CDS (5Y Senior Debt) spreads of the main Spanish banks over the last 12 months continues, thanks to the market’s improved perception of the risk of default on debt issued by banks. The ghosts of contagion from the US mid-market banking crisis have been completely banished.
Sabadell continues to be the Spanish bank with the highest spread, at 104.8 bps at the end of March, but with a clear improvement from the highs of 175.4 in August 2023.
Bankinter closed the quarter with a spread of 71 bps, reducing its June 2023 highs by more than 38 bps.
CaixaBank closed the first quarter with a spread of 65.35 bps, confirming the downward trend of the last 12 months.
At the end of the quarter, both Santander (CDS 44.2 bps) and BBVA (CDS 42.4 bps) had the lowest CDS prices, indicating greater market confidence in their debt repayment capacity.
No tensions in the quality of the issues of the main Spanish banks are in sight.
