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Caja CDS still near highs as Spanish banking system worries continue despite new 7-way merger talk

|Includes: ADRU, AXFN, BBV, BBVA, CS, EEA, EF, EMFN, EUFN, EWP, FAS, FAZ, FEFN, FGEM, SAN, The Ibero-America Fund, Inc. (SNF), XLF

Spanish bank and caja credit default swaps are trading tighter, and off their record highs from Tuesday, as news of a mega-merger amongst the cajas take hold. Yesterday's reports involve a previously announced 6-way merger led by Caja Madrid and another potential suitor in Bancaja being added to the mix to create Spain's largest savings bank.

Disclosure: long all stocks