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CDS rating for Coventry B/Society

by castle696 14 November 2008 |

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does anyone know what it is ??/ Seems a fair indication nowadays,, Lloyds at 70 and ICICI at 883 !!
(CDS = credit default swap)

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HuttonFrank posted
I found this on the "This is Money" site.

Fitch rating for Coventry: A (Oct 14: outlook – stable)
The quality of Coventry's assets is evident by the fact that only a small proportion of its loans at 0.55% are in arrears of more than three months.

Once the credit crisis began to take hold of financial markets in 2007, Coventry's deposits from High Street savers grow faster than its mortgage book and were approximately equal to the loan book by the end of the year.

The society plans to fund any loans given out in 2008 purely through its savings deposits. It is strongly capitalised and is one of the few building societies to conform to the revised Basel II framework: this updated system has more strenuous processes for assessing bank and building society risk. .............................................................................................

I hope they are safe, but they only have £30k of mine.
Posted on 14 November 2008 | Love 0 loves Report
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castle696 posted
thanks,
I found the Fitch thing, but why can't I find their CDS ?!
I had £30k in their 6.25% 1 yr g'teed rate account (no penalties, etc). Have just put another £51k in as the rate is so good and I can't find better - I know, I know - iffy ! as more than £50k
Will ring/email the Cov themselves and ask re CDS rate
Posted on 14 November 2008 | Love 0 loves Report
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ThatLindseyGuy posted
Peepobaby has it right, The Coventry is far too small an institution for there to be any significant demand for CDSs on its bonds.

Even if Coventry CDSs exist -- which i highly doubt -- they will be highly illiquid and therefore very difficult to price.

You'll tend to find that CDSs only exist for very large bond issuers -- usually banks, insurers and large industrials -- as there is much higher demand.
Posted on 15 November 2008 | Love 0 loves Report