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Bank Of America CDS Update

Tyler Durden's picture




 

BAC default risk at 265-270 bps as of this morning. About 30 tighter from yesterday's epic rout which saw the final bid/asl around 290/310, or well over 100 wider on the day. The longer BAC keeps mum, the worse this will get, and we expect the bleed wider to resume shortly, slowly at first, then very fast if no curve steepening QE3 Operation Twist is announced.

 

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Tue, 08/09/2011 - 07:56 | 1541862 slaughterer
slaughterer's picture

Short BAC-L

Tue, 08/09/2011 - 07:58 | 1541866 Ghordius
Ghordius's picture

Now this is a CDS market that makes sense. I wonder who would pay at the end if BoA really...

Quick, Bernanke, to the rescue!

Tue, 08/09/2011 - 07:59 | 1541870 spiral_eyes
spiral_eyes's picture

Over in the UK. Why Martial Law is Inevitable:

http://azizonomics.com/2011/08/09/martial-law-inevitable-not-desirable/ 

Tue, 08/09/2011 - 08:08 | 1541900 TIMMAYYY
TIMMAYYY's picture

Problem...Reaction....Solution

i Personally believe that they let all the rioting get out of hand in those areas. Now the public will DEMAND troops in the city and a curfew. So when the shit REALLY hits the fan the boys in blue are already there to smash the angry masses...rubber bullet to the head and a person drops like a bag full of crap...that sort of riot control

People are looting shit they dont really need..this is just bored kids....just wait till everything starts crumbling. Pathetic liberal commentary that only condemns the problem and does nothing about it will soon fade away when they see the shit hole we are all in.

untill then...im gonna have a drink and moan a bit more...thumbsupforhavingthedayoff

Tue, 08/09/2011 - 08:18 | 1541924 TIMMAYYY
TIMMAYYY's picture

watch the BBC get owned...those utter twats

http://www.youtube.com/watch?feature=player_embedded&v=biJgILxGK0o

hahaha

Tue, 08/09/2011 - 08:25 | 1541944 Drag Racer
Drag Racer's picture

this was mentioned on another forum and my answer to the ignorant post.

 

OP: "they are rioting because they want free stuff"

a reply: Indeed, seems to be a common trend.

my reply:

no, they are rioting because their ability to prosper and avenues to expend their energy in a productive way have been severly limited by the policies of their government. if there is no way for energy to be constructively used it will end up being used in a destructive manner. the only thing ever learned from history is the fact we never learn from history...

Tue, 08/09/2011 - 08:41 | 1542004 TIMMAYYY
TIMMAYYY's picture

all i be saying is that we havent seen nothing yet. im not saying that there is nothing wrong yet...things are fucked and people are slowly waking up. its just that the majority of people have no clue as to where to aim their anger...they are fed lies and non thruths from our media. they dont know who to throw a brick at......so they just let out in a string a violence....

 

dont blame the kids...

Tue, 08/09/2011 - 08:11 | 1541908 ZeroPower
ZeroPower's picture

Recovery on the CDS decided via auction, and then whatever counterparties are intertwined net it out amongst themselves.

Tue, 08/09/2011 - 07:58 | 1541867 Popo
Popo's picture

QE3 will at best be hinted-at today.  Bernanke is far more likely to jawbone at this point, imho.

I think we'll see the old,  "The Federal Reserve stands at the ready to protect markets" line...

 

 

Tue, 08/09/2011 - 08:02 | 1541880 Quintus
Quintus's picture

I think the stock markets will be looking for more than that.

Not saying Ben won't try it, but it seems unlikely to work in terms of halting the disappearing 'Wealth effect'.

Tue, 08/09/2011 - 08:00 | 1541874 ZeroPower
ZeroPower's picture

Tyler, we saw some trades at the 295 mid this morning, has tightened a bit since then but the MMs on this are also very weary of taking the trade - i.e. flipping their b/o soon as someone wants to hit.

Tue, 08/09/2011 - 08:04 | 1541886 bob_dabolina
bob_dabolina's picture

Could Paulson have started liquidating some of his gold position? 

He must have had some margin calls by now

Tue, 08/09/2011 - 08:07 | 1541890 moneymutt
moneymutt's picture

Everyone complained that we did not let the TBTF fail, we bailed them out in so many ways, and yet the shotgun marriage arranged by Paulson to save the world is now being exposed by lawyers and investors, of all people. We may not have criminal law justice, our politiicians may have been paid to turn a blind eye, but civil courts still semi functioning, as no corrupted politician needed to exact justice. Finally, justice and a very delayed rule of law.

Tue, 08/09/2011 - 08:42 | 1542008 living on the edge
living on the edge's picture

I wish I still had my mortgage with BAC. I paid it off last April and what a sorry excuse for paperwork came forth at closing. I am sure all my old documents were lost and replaced by the mers fraud mill. The corruption is rampant among the TBTF banks and it is frightening to witness first hand.

Tue, 08/09/2011 - 08:17 | 1541919 mantrid
mantrid's picture

Perhaps that's why the downgrades (I don't believe S&P just got illuminated overnight and went patriotic). Timmy spend too much time helping UE rather than his old freinds and now as they face turmoil Wall Street hopes he get removed. And replaced with something far worse...

Tue, 08/09/2011 - 08:53 | 1542056 Marge N. Callz
Marge N. Callz's picture

Dick Bove on CNBC said that "he is not buying but if he was he would buy Bank of America..."  Apparently he's just going to fall on that sword.

Tue, 08/09/2011 - 09:09 | 1542107 oogs66
oogs66's picture

it is different to be "not buying" and be long already at a much higher price! 

helicopter ben better come to the rescue today

Wed, 09/14/2011 - 05:19 | 1667568 chinawholesaler
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