indigo-alien

Financial Stocks Trading Near Book Value

The market is telling us that there is a substantially greater risk of bankruptcy in BSC, than ML.

Simple really.

Rumor of the Day: Bear Goes Belly Up

"Meanwhile, spreads on the company’s credit default swaps have widened dramatically, to between 700 and 800 basis points, compared with about 450 points Friday."

This is exactly the sort of move that preceded the waterfall move in TMA stock prices. It would appear to me that credit market participants have information that stock market participants, particularly retail participants, don't have.