Lehman's credit default swaps tighten 23 bps

NEW YORK (Reuters) - The cost of insuring Lehman Brothers' debt with credit default swaps tightened on Thursday, tracking gains in its shares, according to data from Phoenix Partners Group.

Lehman's five-year credit default swaps fell to 240 basis points, or $240,000 a year to protect $10 million of debt, down from 263 basis points at Wednesday's close. Its shares rose $1.20 or 3.8 percent to $32.60 on the New York Stock Exchange. Earlier this week, Lehman had been besieged by reports that it may need to raise capital, but on Thursday, Deutsche Bank maintained a "buy" recommendation on Lehman's shares, while a Loomis Sayles bond manager on Wednesday said he was buying Lehman debt.

(Reporting by Dena Aubin; Editing by Theodore d'Afflisio)