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By Boyd Erman

Equity markets ran up share prices of battered U.S. banks like Bank of America (NYSE:BAC) on Thursday, but the optimism isn't shared by the credit default swap market.

When banks got beat up in the last crisis, the CDS market was often a better indicator, perhaps because the trouble for banks originated in credit markets.

"U.S. bank CDS did not enjoy the same extent of relief with spreads remaining stubbornly wider on the day for many names," according to tracking firm Markit. "JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) were the noticeable exceptions, more or less unchanged on the day. Interestingly enough, CDS spreads seemed to lag equities in the sector, particularly for Bank of America."