Gtarras

Panic in CDS Market to Cause Next Collapse in Equities

one more comment.. since i built these CDS pricing models for the desks, i have some authority to speak to the CDS pricing.. admittedly, not all of it is technical... But let me ask us you this, how can a kid, with 4-5 years of credit experience track up to 200 names at the same time? mind you, the kid is authorized to trade... LOL!!! what do you think is driving this CDX spike? fundamentals only?

"CDS pricing specialists are obviously not impressed either with the unprecedented interest rate cuts in Europe and England or with the growing realization that a zero-rate 2009 may well be on the cards." yep, they are not... because they only look at the equity vol, which is affected by redemptions, which are affected by the higher CDSs etc.. on and on it goes...