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Wachovia debt protection costs fall as stock recovers

NEW YORK
Tue Jul 22, 2008 12:58pm EDT

NEW YORK (Reuters) - Debt protection costs for Wachovia Corp fell on Tuesday as its shares recovered earlier losses.

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The cost of protecting Wachovia's debt for five years with credit default swaps fell to 282 basis points, or $282,000 a year to protect $10 million of debt, from 305 basis points at Monday's close, according to data from Phoenix Partners Group.

Credit default swaps earlier widened to 315 basis points after the bank posted an $8.86 billion second-quarter loss, slashed its dividend and announced heavy job cuts after mortgage-related losses soared.

Shares in Wachovia were about 6 percent higher at $13.96, after earlier falling as low as $11.65.

(Reporting by Anastasija Johnson; Editing by Tom Hals)
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