Next Victim, Please!

Includes: MS, WFC
by: John Jansen

Wachovia cash bonds have dropped by 20 points today. The CDS is trading with points up front and the last quote I heard is 33/37.

One corporate bond salesperson opined that Golden West Financial ,which Wachovia acquired, looks very much like WaMu (NYSE:WM).

Separately, a commenter on another post at the blog noted that Morgan Stanley (NYSE:MS) CDS is trading points up front. I do not have a quote.

This cannot continue. The system is eating its young.