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.