http://zerohedge.blogspot.com/2009/03/ges-8-billion-downgrade-time-bomb.html
Now trading below $6 and with futures in June showing a huge increase at the $2.50 level. Things are not good from one of the largest comapnies in america.
Wednesday, March 4, 2009
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2 comments:
Hearing some crazy scrambling among CDO bespoke dealers hedging their jump risk! MOre than anything this is what is dragging CDS wider. Using any Capital Structure model, GECC's CDS trades cheap (wide) to its equity at these levels (but not as much as one might believe). That AAA badge swings both ways - at least they ca still fund via TLGP!
:)
On the other side of the coin some Jan 2010 30 and 35 calls traded in size today (1-2k, each). It's a long way from $6 to $30 in a year.
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