There is a story in the WSJ this morning about an anti trust investigation in the telecom industry. Spreads have completely shrugged this 'news' off and are slightly tighter.
The yield on the JPMorgan credit index stands at 6.12%. The spread on the Barclays credit index closed at 273bps.
The FT has an interesting article about the new mode of securitization and how it does not necessarily involve the new underwriting of risk....but rather a re-juggling of existing debt. SIV/CDO redux?
I've long been a fan of innovative ways to graphically display information....thus a devout follower of Edward Tufte. Here are 2 interesting charts from the last few days. The NY Times has this one which shows the depth and direction of this current recession. The WSJ has one that shows the alarming growth of the Fed's balance sheet as they put out fires.
Barrons had an article highlighting some stock short picks. One that trades pretty actively in the credit markets is Pactiv. There is a pretty big diverence between the performance of the equity and the CDS. Either the equity is priced too low or the CDS should be much much wider.
I was not surprised to learn that the part of the brain that controls the motivation of greed is the same that controls sexual desire. I learned this tidbit in Scientific American's article about the science behind economic bubbles and bursts.
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