Bonds: British Airways CDS down

The credit protection cost of British Airways rose on Friday as wildcat strikes forced the UK flag carrier to cancel Heathrow flights for a second day, grounding some 70,000 passengers during the peak travel month.
Five-year credit default swaps on the airline were indicated about three to four basis points wider at 135 basis points, meaning it costs 135,000 euros to insure 10 million euros equivalent of BA debt against default.
That is about 3,000 to 4,000 euros more than Thursday.
"The market is technically strong for BA. It should be wider but it isn't," said a credit trader in London.
BA said it cancelled all flights using Britain's largest airport until at least 1900 GMT, extending a previous suspension by two hours as it continues to urge strikers to return to work.
About 1,000 baggage handlers and other BA staff walked out on Thursday in support of sacked workers from BA catering supplier Gate Gourmet.
Around 100,000 passengers fly daily with BA in August, and about two thirds of its flights, excluding franchises, use Heathrow, the world's busiest international hub.
Unofficial strikes in 2003 cost BA around 40 million pounds, and analysts said the airline is getting a reputation for letting down customers.
But the cost of credit protection for BAA was unchanged. BAA operates seven UK airports including London's Heathrow, Gatwick and Stansted.
Five-year BAA credit default swap was bid at 19 basis points. That means it costs 19,000 euro to insure 10 million euros worth of BAA debt against default, same as Thursday.
"If anything, I've even seen some tighter bids for BAA," said a second credit trader in London.
The spreads on the most liquid names in the euro corporate bond market remain unchanged on the day, as the summer lull continues.
General Motors' 8.375 percent euro bond due in July 2033 was unchanged on the day at 85 percent of face value.
The FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 37 basis points more than similarly-dated government bonds at 1428 GMT, 0.5 basis points more on the day.