CDS Rout In Financials Continues, As Equities Finally Smell The Foreclosed Coffee

Tyler Durden's picture Submitted by Tyler Durden on 10/14/2010 11:16 -0500

Bank of AmericaCapital OneCitigroupGoldman SachsRealityWells Fargo

First thing yesterday, when we first highlighted that CDS in mortgage fin names were blowing out, even as the moronic market was all giddy on JPM’s earnings beat which was really a miss, we warned “be careful trading financial stocks: JPM’s earnings were actually very bad, and so far only credit has figured it out. Equities, being traded now exclusively by Fed-frontrunning retards and virus-infested robots, are a little slow.” Prophetically, the equity slowness has finally caught up with reality, and BofA and Wells stocks are tumbling. Alas, fins have much more to drop, especially if and when the RMBS and CMBS markets are gutted (incidentally that CMBX III-IV AJ is looking like a screaming short right here, right now). Below is that latest CDS fin rerack – it is a bloodbath.

Bank of America Corp.        195.50    182.5    +13.00 Citigroup Inc                       176.50    165.5    +11.00 Capital One Bank                  86.50    80.3    +6.25 Capital One Financial Corp.  114.50    107.5    +7.00 JP Morgan Chase & Co.         97.50    90.5    +7.00 Wells Fargo & Company      131.50    120.0    +11.50 Ally Financial Inc.                 447.50    390.0    +57.50Residential Capital, LLC       746.49    685.0    +61.49 Goldman Sachs Group Inc   151.50    145.5    +6.00

and, last but not least,

Block Financial LLC              557.50    522.5    +35.00

Good work Strat Session for catching up here.

h/t Credit Trader

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by Turd Ferguson
on Thu, 10/14/2010 – 11:18

Don’t count on it. Tomorrow and Monday are both POMO days.

Login or register to post comments by Maos Dog
on Thu, 10/14/2010 – 11:34

Where’s the new pomo list?

I go to the pomo page all I get is this:


There are no operations at this time.

Login or register to post comments by Dagny Taggart
on Thu, 10/14/2010 – 11:39

Login or register to post comments by Turd Ferguson
on Thu, 10/14/2010 – 11:46

Here you go, daddy.…

Login or register to post comments by cossack55
on Thu, 10/14/2010 – 11:24

Is POMO Fedspeak for CDS?

Login or register to post comments by MaxVernon
on Thu, 10/14/2010 – 11:26

This little bastard HFT machine will certainly help:

Login or register to post comments by Cheeky Bastard
on Thu, 10/14/2010 – 11:28

Why only AJ III-IV ? Due to composition ? I would say III-V IG  tranches are all a short. 

Login or register to post comments by doolittlegeorge
on Thu, 10/14/2010 – 11:30

I was wondering when you were going to make an appearance.  Don’t forget “the market is shrugging it off.” 

Login or register to post comments by cbxer55
on Thu, 10/14/2010 – 11:31

Hey, he’s back!

Where ya been hiding?

Stick around for awhile thie time.

Login or register to post comments by chinaguy
on Thu, 10/14/2010 – 11:39

How’s yer health CB?

Login or register to post comments by Cheeky Bastard
on Thu, 10/14/2010 – 11:38

Ok; to make my point for the commentators here [then I fade back into obscurity].


Basically these 4. The rest, possibly, but not as sure as this. I mean come the fuck on; trading at almost par in this environment with these problems; no way. Someone [read FED or its “affiliates”] is bidding this up to keep the illusion that everything is fine going on since this shit is practically a benchmark for the CRE market as a whole. I am too lazy to go trough my bookmarks but there was an uproar in the CRE industry a while back when they basically stated that the volatility in CMBX [pick your tranche] is causing massive problems for them since potential investors use it as a benchmark. So, extended that logic here and its only been bid up to these levels to “give assurance”. Ditto some ABX tranches [even more ridiculous than CMBX].

Login or register to post comments by Miles Kendig
on Thu, 10/14/2010 – 11:47

Watch out Cheeky .. Evil speculators will once again become the topic du Jour…  Can’t have specualtion in financial markets or there would never be that crap called price diiscovery or genuine financial alchemy.

Login or register to post comments by praps
on Thu, 10/14/2010 – 11:39

POMO days


Login or register to post comments by TooBearish
on Thu, 10/14/2010 – 11:43

But…AAPL is still green!

Login or register to post comments by JLee2027
on Thu, 10/14/2010 – 11:47

It would be ironic if the CDS rise foresees the destruction of JP Morgan and company per it’s inventor – Blythe Masters.

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