Friday, September 26, 2008
here comes wachovia
Wachovia cash bonds have dropped by 20 points today. The CDS is trading with points up front and the last quote I heard is 33/37.
One corporate bond salesperson opined that Golden West Financial,which Wachovia acquired, looks very much like WAMU.
Separately, a commenter on another post at the blog noted that Morgan Stanley CDS is trading points up front. I do not have a quote.
This can not continue. The system is eating its young.
an immediate consequence of the washington mutual bond wipeout. there will be no prisoners now short of massive government intervention to prevent bank failures.