Spreads widen on Morgan Stanley (MS -5.4%) five-year CDS to 455 bp, highest since March 2009....

|By:, SA News Editor
Spreads widen on Morgan Stanley (MS -5.4%) five-year CDS to 455 bp, highest since March 2009. Bank of America’s (BAC -1%) spread also is up 3% to a record 410 bp. But Morgan Stanley’s exposure, located in more dangerous forex derivative contracts rather than relatively easy-to-hedge plain vanilla interest rate swaps, is considered more troubling.