This page has been archived and commenting is disabled.

Post Revolution, Tunisia CDS Still About 100 bps Tighter Than Illinois

Tyler Durden's picture




 

As China's president heads over to Barack's home town, we wonder if he is aware that according to the market, Chicago is in a state whose credit risk is about 100 basis points wider compared to a post-revolutionary Tunisia. Despite the country's recent presidential coup, and subsequent downgrade by Moodys to Baa2, the African nation's CDS, which spiked from 120 to 180 bps, is still just 100 basis points inside the CDS of Illinois. And this still assumes 80 cent recovery. We wonder how long before one or more Vallejo precedents reprice the entire CDS muni curve. Should the default recovery be dropped from 80 to, say, 20, it would get very interesting...

Tunisia CDS:

And Illinois. Note the actual levels.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/19/2011 - 18:11 | 888496 Malcolm Tucker
Malcolm Tucker's picture

How 4130 US government "economists" got it wrong!

http://fedupmontrealer.blogspot.com/2011/01/4130-us-government-economists-got-it.html

And a video of a man often mocked and ridiculed who got it right!

Wed, 01/19/2011 - 18:12 | 888499 mynhair
mynhair's picture

Rahm, bitchez!

LOL

Wed, 01/19/2011 - 18:13 | 888502 NOTW777
NOTW777's picture

let Hu and Obama go to Tunisia and hand out food and relief

Wed, 01/19/2011 - 18:15 | 888505 mynhair
mynhair's picture

Just let them be food.

Wed, 01/19/2011 - 18:31 | 888560 Segestan
Segestan's picture

Except you're food .. Right?  Thats the problem with western mindset... I'm agonna helpin ahem!!

Wed, 01/19/2011 - 18:35 | 888576 mynhair
mynhair's picture

Gotta catch me first, slugmo.

Wed, 01/19/2011 - 18:15 | 888508 Dr. Porkchop
Dr. Porkchop's picture

Well bang dae ho with a long duk dong!

Wed, 01/19/2011 - 18:16 | 888510 Agent P
Agent P's picture

I thought Barack's home town was Jakarta?

</sarc>

Wed, 01/19/2011 - 18:29 | 888547 mynhair
mynhair's picture

Nairobi, geez....

Wed, 01/19/2011 - 18:40 | 888587 Agent P
Agent P's picture

Sorry, I guess I didn't read the fine print on the birther signs.  However, I just checked Wikipedia, and it would seem that both are "valid" conspiracies.

http://en.wikipedia.org/wiki/Barack_Obama_citizenship_conspiracy_theories

Wed, 01/19/2011 - 22:31 | 889094 Jerome Lester H...
Jerome Lester Horwitz's picture
Hawaii governor can't find Obama birth certificate

'Abercrombie did not report to the newspaper that he or the Hawaii Department of Health had found Obama's long-form, hospital-generated birth certificate. The governor only suggested his investigations to date had identified an unspecified listing or notation of Obama's birth that someone had made in the state archives.

"It was actually written, I am told, this is what our investigation is showing, it actually exists in the archives, written down," Abercrombie said.'

So I hope this finally settles it. The governor says that something is written down somewhere in the State of Hawaii archives by someone. He may not be able to locate the long form Birth Certificate but somebody wrote something down somewhere in the state archives and that should be good enough for anyone who has any doubts about his place of birth! Disregard the fact that we don't know who wrote what or wrote it when or what they actually wrote about Obama's birth but take comfort that the Governor of Hawaii knows that somebody wrote something.

Hawaii governor can't find Obama birth certificate http://www.wnd.com/?pageId=252833#ixzz1BXROAvos

Wed, 01/19/2011 - 19:43 | 888766 Blano
Blano's picture

Ha beat me to it.

Wed, 01/19/2011 - 18:22 | 888521 Joeman34
Joeman34's picture

As an IL resident - makes perfect sense...

Wed, 01/19/2011 - 18:30 | 888555 mynhair
mynhair's picture

Hey!  Obambi sez we are all rich!

(Libs rush to buy more iCit)

Thu, 01/20/2011 - 09:11 | 889558 weinerdog43
weinerdog43's picture

But you conservadorks bought 'em all before we could get there. 

Wed, 01/19/2011 - 18:38 | 888580 Sophist Economicus
Sophist Economicus's picture

Putting 2 + 2 together -- it sounds like Illinois NEEDS A REVOLUTION!

 

Wed, 01/19/2011 - 18:45 | 888612 Agent P
Agent P's picture

Would only seem fair considering the state government put 2 + 2 together, and somehow came up with 6.

Wed, 01/19/2011 - 19:46 | 888779 JW n FL
JW n FL's picture

Cheaper in Africa than in the US... the FED is doing a bang up job!

Wed, 01/19/2011 - 19:51 | 888788 JW n FL
JW n FL's picture

Cheaper in Africa than in the US... the FED is doing a bang up job!

Wed, 01/19/2011 - 21:01 | 888868 Mad Max
Mad Max's picture

This makes perfect sense to me.  In this case I think the markets are getting it right.

I sold all my munis 2 years ago.  I was 1.5 years too early, but I can't say that missing out on 2% interest really hurt me that much.

Wed, 01/19/2011 - 22:10 | 889047 Missiondweller
Missiondweller's picture

Perhaps if Chicago has a revolution and government overthrow their credit spreads will drop.

 

 

Thu, 01/20/2011 - 07:28 | 889470 topcallingtroll
topcallingtroll's picture

Did i hear someone say revolution? Join our mostly peaceful group. I did say mostly peaceful. The usa took hawaii without firing a shot. Mohammed took medina peacefully when others counseled meeting force with force and no one can forget that the thoreau-inspired ghandi freaked the british out so much they didnt know what to do. I mean what do you do when people que up peacefully, take a reservation number, and wait patiently for their beating? All the time smiling at you? It was freaky to the soldiers, the stuff of nightmares..of course dont forget ghandis words.....first they laugh at you........but i digress.....if u want revolution then join us. Kprice1670@gmail.com. i am not ghandi, but we have an opening in the peaceful wing of the organization. All would be ghandis are welcome to apply. No reference check.

Wed, 01/19/2011 - 22:24 | 889077 Buck Johnson
Buck Johnson's picture

Vallejo has changed the curve, in the later articles about it they are wanting to give bond holder 5 to 20 cents on the dollar.  Tomorrow is going to be one crazy day.

Thu, 01/20/2011 - 00:26 | 889234 JW n FL
JW n FL's picture

buy the dips~!

Thu, 01/20/2011 - 07:48 | 889475 topcallingtroll
topcallingtroll's picture

It is the buyers who will get dipped, I'm afraid.

Thu, 01/20/2011 - 06:53 | 889454 GetZeeGold
GetZeeGold's picture

 

 

Every sov and state is running on a credit card........that is running out.

 

Let that sink in.......really hard.

Thu, 01/20/2011 - 07:18 | 889468 topcallingtroll
topcallingtroll's picture

This would be a great.arbitrage opportunity because at least in illinois they have the tranny balls to.raise taxes 70 percent.

Mon, 01/31/2011 - 07:36 | 919663 shawnlee
shawnlee's picture

There is an article at makemoneywithsixplus.com that gives great insight to foundational elements when it comes to being able to successfully make money on the internet. There is an article at makemoneywithsixplus.com that gives great insight to foundational elements when it comes to being able to successfully make money on the internet. There is an article at makemoneywithsixplus.com that gives great insight to foundational elements when it comes to being able to successfully make money on the internet. There is an article at makemoneywithsixplus.com that gives great insight to foundational elements when it comes to being able to successfully make money on the internet. There is an article at makemoneywithsixplus.com that gives great insight to foundational elements when it comes to being able to successfully make money on the internet.
pass4sure \ pass4sure 70-653 \ pass4sure 70-620 \ pass4sure 70-284

Do NOT follow this link or you will be banned from the site!