Re: General Electric CDS and cash spreads blowing out today. Supposedly it’s a single seller “beating down the name in all corners.”
Update: Deutsche Bank was among the biggest sellers earlier, not surprising since they cut estimates. But now DB is saying buyers outnumber sellers. The seller might have backed off since the spreads snapped back up pretty quickly just before 10.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Which fund just died?
Douche Bank is toast! (Unless we, US taxpayers, bail them out).
We are hearing that a $30 billion Gordian Knot sponsored SIV (SIGMA) was invested heavily in asset-backed and unsecured debt in financials — including GE credit bonds.
SIGMA has been borrowing heavily to make coupon payments, and yesterday a counterparty (apparently JPMorgan) called in their collateral backing of a repo line to them.
Much of that collateral was in the form of GE Commercial credit — which is being sold — and resulting in GE CDS spreads widening out.
Sellers haven’t backed off on the floor.
Buying the paper – selling the stock – 700 wide is a no brainer. If they go out – it is time for End of Days.
Agree Marshall….already tighter. Technical move with no credit justification.
Where is the best place to find CDS quotes online?
@ 3
I am hearing the same….
GE CAPITAL CORP NOTES 36962GR48
Semi-Annual 4.125 09/01/2009
97.55000 6.966
Tons offered – more than I can take.
7% – less than a year.
THNAK YOU UNCLE WARREN!!!!!