CIT credit protection costs fall after sale news

NEW YORK (Reuters) - The cost to protect debt of CIT Group with credit default swaps fell on Tuesday after the New York-based commercial lender said it agreed to sell its home lending business and other holdings for expected net cash proceeds of $1.8 billion.

CIT's five-year credit default swaps fell 55 basis points to 715 basis points, or $715,000 a year to protect $10 million of debt, according to Phoenix Partners Group.

(Reporting by Walden Siew; Editing by James Dalgleish)