Credit Market Commentary: Market Derived Signal: Spurned By T-Mobile, Sprint?s CDS Spread Expands Mar 11
- ID: 2084159
- March 2011
- Standard & Poors
The news of AT&T's $39 billion bid for Deutsche Telekom AG's U.S. business dealt a blow to Sprint Nextel Corp., which recently considered merging with T-Mobile to reduce its subscriber losses. On March 9, we noted that the five-year credit default swap (CDS) spread for Sprint had tightened significantly on talk of a possible merger (see the Credit Market Commentary: "Market Derived Signal: The CDS Market Talks Up Potential Sprint-T-Mobile Merger" published March 9, 2011 on the Global Credit Portal). After AT&T's surprise proposal to acquire T-Mobile, the CDS spread on Sprint widened by 17.5% on Monday to 308 basis points (bps), according to CMA DataVision. On Tuesday, it widened another 7.4% to 331 bps. The merger between AT&T and...
Companies mentioned in this report are:
- Sprint Nextel Corp.
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