CIBC & RBC Likely to Increase Markdowns on Hedges with Financial Guarantors

RBC Capital Markets, 25 June 2008Problems facing financial guarantors worsened recently as rating agencies downgraded several large players.� We believe further large write-downs are likely as credit default swap spreads have widened considerably since the end of Q2/08.� Banks have not been valuing their hedges with financial guarantors solely on credit ratings, but have also taken into