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November 9 CDS Heatmap
Remember the equity market yesterday: total, insane, low-volume melt up? One would think CDS would be blue blue blue. Well, here is what happened across NA IG CDX land. (and yes, no surprises).
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Can you please explain why things should be blue based on yesterday's performance, just trying to understand.
Thank you.
As disclosed earlier, blue is tighter (equivalent to a cash bond increasing in price). vice versa for red. tighter accompanies move higher in equities. read the end of day CDS recap reports from credit research to get a sense for the data qualiatitvely. the heatmap gives a good 30k foot idea of what happened as a post mortem.
Tyler,
Thank you for the info and this website. I will read the information.
His name was Robert Paulson.
I have absolutely no idea what I am looking at, but it is kinda pretty...
I agree. very pretty.
That was my first thought, too!
My second was: How come I got the worst cubicle on the floor!
oven mitt
How do explain the divergence in GE equity vs. GE CDS?
Cause frontrunningbot 3000 (equity, the credit version costs $19.95 more) blew a fuse
the amusing thing is that is probably the most rational explanation.
With explicit 100% backing from Uncle Sugar, shouldn't Bank of GE be bright blue? Man, that special trading box needs some percussive maintenance!
Maybe because GE issued 1.5B of bonds today?
From WSJ
"General Electric Capital Corp. launched $1.5 billion in notes maturing in five years, according to a person familiar with the deal. The notes were launched at 155 basis points over Treasurys. These levels are at the tight end of earlier price guidance, indicating good demand. Meanwhile, a 5.5% note due in 2014 was quoted at 145 basis points over Treasurys on MarketAxess."
How do I short this map?
Hmmmm ..... DIS heating up a bit. Long term puts might be in order