Is GS Down Due To Rumors Of Big Oil Derivative Loss?
If so, that would explain the significant more lower in the stock intraday (see previous post) as well as the drift wider in CDS, which opened 100/105, rose to 103/108 and jumped to 107/112 on the rumor. (Ignore the stock's move higher over the past few minutes. That's just computers responding to the stock bouncing off of the closing VWAP).
In other news, asset class divergence is palpable, as credit is weaker on the day! IG is wider by 1.5 pts intraday.