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  • Goldman Far Outperforms Morgan Stanley in 2008 - Moody's [View article]
    "But as the WSJ graphic below shows, the firms’ credit default swap spreads reflect greater market skepticism about Morgan."

    Skepticism about Morgan in the extraordinarily thinly traded, highly speculative CDS market, that is. CDS spreads say little about performance, and much about that particular segment's opinion of the chances a particular firm will go out of business in the next five years.

    Remember what happened to the CDS spreads on Berkshire Hathaway in November? That in and of itself is sufficient to call into serious question any analysis that uses CDS spreads as an much more than a measure of fear.
    Dec 19 14:48 pm |Rating: 0 -1
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