The Credit/Equity Disconnect Is Now Complete: All Financial CDS Are Wider
No one needs to look at stocks to know how JPM, and the other TBTFs are doing. After all they are now firmly in the clutches of the HFT/Citadel/FRBNY pump machine. Yet a glance elsewhere confirms that all correlations between stocks and credit are terminally broken. To wit, note the following CDS spreads as of moments ago:
- JPM 85/88 (+4)
- MER 184/189 (+6)
- MS 170/175 (+5)
- WFC 105/110 (+6)
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.