Monday 12 November 2007

Keeping an eye on Credit spreads & CDS

Last week felt eerily similar to mid August when the carry trade started to unwind and credit spreads expanded rapidly. As shown below credit spreads are already back to mid August levels.





How about these Credit Default Swaps for the Homebuilders courtesy of MGETA:


Nasty stuff. If one of these Homebuilders doesn't go bust it will be a miracle.

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