Citigroup’s rate fell below Bank of America’s this week for the first time since September 2007.
The five-year swap rate for Bank of America rose today to 200 basis points, according to Phoenix Partners. The rate stood at 180.5 basis points yesterday, based on Bloomberg data. Each basis point equals 0.01 percentage point and amounts to $1,000 a year on a contract protecting $10 million of debt. Citigroup’s rate was 165.4 basis points yesterday.
Lets not forget that Citi disposed of the majority of their toxic assets to the govt and wrote down a massive amount of the rest. I have long said that Citi's books are cleaner.
Disclosure: Long C equity and preferreds.
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
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