Morgan Stanley
Friday, September 26th, 2008Morgan Stanley CDS had been quoted this morning 20 points up front.I guess a good wind is blowing and the current quote is 11 1/2 /13 1/2.
Archive for September, 2008
Morgan Stanley CDS had been quoted this morning 20 points up front.I guess a good wind is blowing and the current quote is 11 1/2 /13 1/2.
Next Victim, Please !!!
Friday, September 26th, 2008Wachovia cash bonds have dropped by 20 points today. The CDS is trading with points up front and the last quote I heard is 33/37. One corporate bond salesperson opined that Golden West Financial,which Wachovia acquired, looks very much like WAMU. Separately, a commenter on another post at the blog noted that ...
Libor
Friday, September 26th, 2008Three month Libor is pretty much unchanged at the elevated level of 3.76 percent. The market remains dysfunctional and most trading is confined to the very short maturities.
IG 10: Not Pretty
Friday, September 26th, 2008The IG 10 has traded as wide as 175 this morning and I recently observed a 170/173 quote. It closed yesterday at 160 1/2.
Fortis
Friday, September 26th, 2008European financial firm Fortis contemplates selling assets to fortify its liquidity. I love the headline on this story which says that business is solid but we are expanding asset sales. That is what a strapped renter does to pay the rent!
SOme Opening Comments September 26 2008
Friday, September 26th, 2008Prices of Treasury coupon securities are surging in overnight trading as markets react to the breakdown of negotiations in the US to craft a deal which would unshackle the bound and constrained credit markets. The yield on the benchmark 2 year note has dropped 15 basis points to 2.01 percent. ...
Antipodean Action
Friday, September 26th, 2008Australia will spend about $ 4 billion purchasing residential mortgages to unclog the credit markets in that country.
Politico.Com
Thursday, September 25th, 2008This excellent website has a lengthy story which recaps the breakdown of the discussions to bail out the financial system.
William Butler Yeats
Thursday, September 25th, 2008Here is a great poem by Irish poet William Butler Yeats. It is excellent reading as the world spirals out of control.
Discount Window Borrowings: $262 Billion
Thursday, September 25th, 2008I wrote a few weeks ago when Lehman collapsed or AIG collapsed that observing the financial markets today is like reading financial science fiction. This another unprecedented evening after an unprecedented day. There is no history to consult and no markers to guide us. We are flying seat of the pants ...