• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

Bank Of America CDS Now Offered At All Time Wides: Full Fin CDS Rerack

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/23/2011 - 08:38 | 1589609 malikai
malikai's picture

Party HARD.

Tue, 08/23/2011 - 09:12 | 1589747 slaughterer
slaughterer's picture

Looks like another 2008-style fire sale scheduled for the NYFED this weekend. 

Tue, 08/23/2011 - 11:42 | 1590420 fx
fx's picture

The only ones making money on these absurd instruments called "CDS" are and will be the writers thereof - at least when it comes to CDS on the biggest and systemically important banks. Lehman failed, yes, and it exactly showed the governments and central banks what a hurricane followed/accompanied it. The powers that be will not let any of those banks go bk. Shareholders may get wiped out, even senior bondholders may receive some blows but rest assured cds holders will get nothing. Did you notice Greece? selective default, large rescue funds - no credit event. Heck, BAC and Co could make a ton of money by just selling each others' CDS  - billions of $$. Anybody buying these CDS is a complete fool, imho.

Oh and btw: the notion that the CBs are out of money compared to 2008 is a naive one, imho. They could print up as much money and temporary credit facilities as needed. They could grant unlimited liquidity and funding for years to come. Of course they are already leveraged to the hilt. So what? they could leverage up  many times more. The Fed, the ECB, the Boj or the PBoC certainly will never ever get a margin call, so the only real constraints are public opinion and potentially inflationary effects down the road. they will rather deal with those issues later than allow a banking melt-down. All those fears and panic moves in the CDS markets are overblown. 2 years from now the same people who right now rush into bank-CDS will be happy to sell them for a fraction of todays prices. watch and learn.

Tue, 08/23/2011 - 08:39 | 1589615 ZeroPower
ZeroPower's picture

Inverted CDS curve for BAC... 5yr "costs" more than the 10yr upfront.

We saw this in Greece as well.

Tue, 08/23/2011 - 08:52 | 1589674 Christobevii3
Christobevii3's picture

Can we just refer to this as the prolapse curve?

Tue, 08/23/2011 - 08:58 | 1589704 EscapeKey
EscapeKey's picture

As long as they don't pledge BAC shares as collateral for CDS written on BAC, I think we'll be alright.

Tue, 08/23/2011 - 08:39 | 1589617 hugovanderbubble
hugovanderbubble's picture


BAC and Unicredito

Worst CDS across all boards of big banks....


Tue, 08/23/2011 - 08:45 | 1589642 ZeroPower
ZeroPower's picture

? I sure hope youre not trading based on your facts.

Santander, Intesa, RBS, basically all Portguese baks.. all wider. Sub or SNR, take your pick.

Tue, 08/23/2011 - 08:48 | 1589654 hugovanderbubble
hugovanderbubble's picture

Look the CDS 2 yrs...the five year is irrelevant for a credit event. The 2yrs is the real key one to focus.




banks with > 10 mn euros market cap  worst 2 yrs cds.



Tue, 08/23/2011 - 09:10 | 1589746 ZeroPower
ZeroPower's picture

5yr is irrelevant for a credit event? Lol

Lets see, the most recent 5yr CDS is the most liquid and most relevant for any sort of comparisons to be made. Second, due to the roll, any desk which hedges their book (so, all MMs in CDS) will choose the 5yr for the very reason every other desk who needs to hedge, uses the 5yr. If you want to look at a diff maturity, look at the 10yr. But of course i assume you know duration risk is a lot more prevalent..

As for the constraints, thats fine, werent there in your earlier post.

Tue, 08/23/2011 - 08:50 | 1589668 prophet
prophet's picture

you really ought to post an article every couple of weeks

Tue, 08/23/2011 - 09:19 | 1589778 ZeroPower
ZeroPower's picture


Tue, 08/23/2011 - 09:07 | 1589737 hugovanderbubble
hugovanderbubble's picture


Here are the facts..


The last update on CDS2yr in EUropean banks and US banks...







Tue, 08/23/2011 - 09:20 | 1589780 ZeroPower
ZeroPower's picture

...Thank you ?

Tue, 08/23/2011 - 08:41 | 1589625 BetTheHouse
BetTheHouse's picture

Funeral march, bitchez!

Tue, 08/23/2011 - 14:22 | 1591342 Manthong
Tue, 08/23/2011 - 08:41 | 1589626 Popo
Popo's picture

And... SKF is in the shitter...

Tue, 08/23/2011 - 08:41 | 1589627 zorba THE GREEK
zorba THE GREEK's picture

Somebody better send out the BAIL signal for BENMAN.

Tue, 08/23/2011 - 08:41 | 1589628 sudzee
sudzee's picture

Ready, get set, PRINT.

Tue, 08/23/2011 - 08:42 | 1589632 maxmad
maxmad's picture

No QE3, bitchez!

Tue, 08/23/2011 - 08:42 | 1589633 Scisco
Scisco's picture

it may be time to cue the Lento from Chopin Piano Sonata, No. 2 in B-flat minor, Op. 35.


I LOLed. Thanks TD.

I feel like a masochist reading these headlines and laughing.

Tue, 08/23/2011 - 09:06 | 1589733 goldinpenguin
goldinpenguin's picture

Funny, I youtubed it

Periodic updates on the fin cds would be entertaining.


Is there any "drop dead" price for any of these CDS? The Merrill CDS is worse than BAC - if that is any consolation. Jefferies analyst said BAC needs to raise 40-50B capital

Tue, 08/23/2011 - 09:50 | 1589959 e_goldstein
Tue, 08/23/2011 - 11:22 | 1590380 Crack-up Boom
Crack-up Boom's picture

Ditto and ditto!  

Tue, 08/23/2011 - 08:42 | 1589635 John McCloy
John McCloy's picture

Tyler how dare you not pit GS in the bank category. Don't you have a Goldman branch in your area like me?
Ben said they are a bank so that's good enough for me.

Tue, 08/23/2011 - 08:43 | 1589638 AngryGerman
AngryGerman's picture

why not introduce worldbonds? let the germans also pay for everybody else?

Tue, 08/23/2011 - 08:48 | 1589664 magpie
magpie's picture

Recently i was discussing how a supermarket offers a "Euro-Wine" mixed from the finest Wines of Europe.

Sounds like a great idea.

Tue, 08/23/2011 - 08:52 | 1589677 prophet
prophet's picture

G-20.  BINGO.  $11T of global bonds to sop up the imbalances (and restructure the debts).

Tue, 08/23/2011 - 08:58 | 1589703 Scisco
Scisco's picture

Didn't they come to the conculsion that credit/debt needed to increase by 200 trillion next year? Global bonds sounds like a great way to do it.

Tue, 08/23/2011 - 09:16 | 1589765 disabledvet
disabledvet's picture

I've actually got the imside skinny on some martian bonds about to be released. Apparently they're back by all the mineral wealth on the entore planet. Maturity is a liitle long--says here a thousand years--so there is some duration risk. 4 and a quarter with "globaltax free status" tho. Obviously mars isn't going anywhere anytime soon...

Tue, 08/23/2011 - 08:43 | 1589640 Seasmoke
Seasmoke's picture

Brian Moynihan is going to wish he diversified his net worth

Tue, 08/23/2011 - 08:52 | 1589676 The Shootist
The Shootist's picture

Go big or go home banksters.

Tue, 08/23/2011 - 09:20 | 1589783 j0nx
j0nx's picture

Please. Whatever this joker said he did, he did the opposite. That bullshit was just said to fluff the sheep into believing all was well. Typical Baghdad Bob bullshit that we all heard leading up to the Subprime implosion and the 2008 financial calamity. Wouldn't surprise me if he shorted their stock secretly somehow on the back end.

Tue, 08/23/2011 - 08:45 | 1589645 prophet
prophet's picture

without an american bank in crisis it is so much harder to justify let alone hide the american participation in the european trap (troubled relief asset purchase)

free MER

Tue, 08/23/2011 - 08:46 | 1589651 ZeroPower
ZeroPower's picture

UBS is the biggest 'winner' on the day, 193/206... +24!

Tue, 08/23/2011 - 08:47 | 1589652 sudzee
sudzee's picture

Not to worry, the FDIC will cut you a post dated cheque. They've got lots of bucks coming in soon.

Tue, 08/23/2011 - 08:47 | 1589656 Surly Bear
Surly Bear's picture

I have a staunch cup of joe, a banana, and a sandwich for lunch. Forty-five minutes to the bell…let’s start the show!

Tue, 08/23/2011 - 08:48 | 1589659 Village Smithy
Village Smithy's picture

Help me out here, which Bugs Bunny episode is that particular piece from again? 

Tue, 08/23/2011 - 08:48 | 1589660 Another Texan
Another Texan's picture

I never thought shorting a company would make me so happy.  Everytime i drive by the local BAC branch, i just smile to myself.



Tue, 08/23/2011 - 08:50 | 1589670 scratch_and_sniff
Tue, 08/23/2011 - 08:52 | 1589671 Archimedes
Archimedes's picture

Bank of America is currently trading at 1/3 of it's book value! Yet no Hedge fund, Blackrock, Paulson, Tepper, Buffet want to buy a company at a third of it's price? Where  are all the bulls to Buy!Buy!Buy?

This means everyone knows that The bank is not worth what it says it is and it is going down. Oh, and in other news That old hypocrite Warren Buffet has lost nearly 2 Billion on his BYD investment! Ha!Ha!



Tue, 08/23/2011 - 09:14 | 1589755 slaughterer
slaughterer's picture

BAC common fair value is $2.  Everybody knows this by now. 

Tue, 08/23/2011 - 08:53 | 1589684 Hedge Hunter
Hedge Hunter's picture

BAC shareholders are about to take a bite of a big shit sandwich.



Tue, 08/23/2011 - 09:00 | 1589710 Gibu The Great
Gibu The Great's picture

Credit markets are obviously reflecting where we are headed in the coming days/weeks.  Stocks are still running on hopium ahead of Friday.

Just watch BAC go from +2% to -2% in premarket in the span of a few minutes.  Euro indicies are well coming well off their highs and futures are cooling.  Same with the (light) selling in gold.  Looks like we're setting up for yet another interesting day at the casino. 

Tue, 08/23/2011 - 09:04 | 1589720 BetTheHouse
BetTheHouse's picture

The market is oblivious.  Merrily ticking higher.  It's going to be a rude awakening at some point. 

Tue, 08/23/2011 - 09:06 | 1589731 Gibu The Great
Gibu The Great's picture

It's hopped up on hopium anticipating some sort of QE from Big Daddy Ben on Friday.  But it is likely that will not come.  Perhaps then the market will wake up and find that that "falling in my sleep" feeling is real, and there's a long way yet to go.

Tue, 08/23/2011 - 09:08 | 1589738 myztix
myztix's picture

what causes the CDS to go in a huge crazy death roll like that?

Is it losing value just like that or is it pure speculation that BAC is going to fail.

It's been talked that 400+ CDS is bad and marks the march 2009 lows.

What exactly is the CDS.. trying to gain some knowledge here.

Tue, 08/23/2011 - 09:18 | 1589771 bill1102inf
bill1102inf's picture

CDS is Credit Default Swap, it is INSURANCE against default, you buy CDS when you think an entity is going to default, the more expensive it is the higher the risk.  See - Bank Of Scamerica is INSOLVENT - has been for YEARS!! Thats why anyone can buy it for 1/3 what its 'value' is, YET NO ONE will touch it. Thats because it is bankrupt 6X over, literally.  This from a company that has 29.9% Credit Cards, borrows at 0% from the fed, off shores employees (India), and took BILLIONS in bailout $$$.  And oh, they paid their execs bonuses... BIG BONUSES

Tue, 08/23/2011 - 10:23 | 1590126 Financial_Guard...
Financial_Guardian_Angel's picture

Brilliant and perfect explanation. I would add they are insolvent because the mortgage loans they hold are double (or worse) than the value of the property. This is based on the "mark to myth" accounting rule that was allowed by the current administration.

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