CDS Update: Financial Rout Resumes

Well, that short-selling ban sure worked for 48 hours.

• EURO Bnks: +doub digits on avg across the board

As for Sovereigns, + means bad:

• LIMONCELLO: +2
• GALICIAN: +10
• MOSCATEL: +14
• OUZO: +1
• DUBBEL: +1
• GREY GOOSE: -1
• ZIPFER: +1
• NEWCASTLE: -1.5
• GUINNESS: +20
• KOLSCH: +1

Index:

IG +2 MAIN: 145/148  +5    XO  618/620  +25   SOVX: 242/245

US Fins:

CDS 5Y: BAC  +10   GS  +5   JPM +5   MS +15  WFC +5  C +5

Comments

[Cdad]

Grey Goose is wildly overrated.  It isn't even as smooth as Sky.  That is my story, and I'm sticking to it.

As for the underlying nations, all are a sell.  ALL!  Congratulations crack monkey CDS holders.

[caerus]

dripping springs vodka

[Bohemian Clubber]

yeah Grey Goose is shit how Jack Daniels compares in that list?

[ZeroPower]

Belvedere FTW

Jack Daniels is 46/51 a few bp tighter.

[speconomist]

Hey guys, which brokers/platforms do you use to trade CDS? InteractiveBrokers, Bloomberg, something else?

I just know forex brokers and would like to expand my possibilities, thanks!

[ZeroPower]

Posted this yesterday:

on Mon, 08/15/2011 - 07:59
#1560975

HFs are basically treated as retail here except retail that has lots and lots of ££..

So the question is, can you access decent capital and commit to a relationship with a credit desk that makes markets in CDS?

You don't simply open up your trading platform and get a bid/ask - not to tradeable anyway. CDS are quoted in 'runs' that flow guys on the sell side send out to trusted people at other firms which might have an interest in hitting their prices either way. 10MM notional is common, upfront really depends on the entity.

Also, due to b/a spreads still being rather wide, you dont simply daytrade in and out of a position as you would in a 100lot of AAPL which you got at a penny wide spread.

[speconomist]

Sorry, I missed it.

Ok, thanks, will have to keep growing my pile of money.

[HITMAN56]

swap Belv and Sky for Ciroc?

[GerritB]

Looking for news that will be seen as bullish......

Cant find it!

[Cdad]

Well, just turn on the BlowHorn [CNBC] where the contraction in the German economy has gotten about a one minute mention.  Onward then with conversation with CEOs and their rose colored lenses.  After all, I don't think they are quite done liquidating their stock options yet, and so you can get a nice positive spin on forward looking earnings.  You'll be all warm and fuzzy within an hour.

Just listen to Cramer.  He will soon tell you that $5 lattes are the ticket to financial freedom.  You'll learn that stocks are currently sporting "historically cheap valuations" and you'll recognize that you are standing in front of the discount bin at Walmart, and you'll be investing based on valuation.  You will hardly be able to stop yourself from buying every stock you look at.

But of course you will then later find yourself under the shears of the criminal syndicate known as Wall Street who will be selling equities as fast as they can to get their leverage down to 30:1, and curiously they won't care about any of the aforementioned things because they simply need to liquidate your sorry ass...

But for awhile, you'll be bullish!  You'll be backwards in the market, but bullish nonetheless.

There...fixed. 

[Henry Chinaski]

DUBBEL: +1

BUSCH: +1

fixed it

[IMA5U]

long guinness

long kolsch

let's drank!

[ietalon]

Becherovka +2

Comfort +2

Rumpleminze -1

Demimondaine +3

Together +10

[ietalon]

And don't forget,

Kalashnikova feminized +6

to help the party mood

[Motorhead]

A big "Ya mas" to the ouzo.  +1 not too bad, all things considered, hehe.