Friday, March 6, 2009

Confusion Among Dimon's Ranks, Or Italian Bankruptcy?

Just hit Bloomberg: JPMorgan denies it published a report Italy is likely to default which is what Italian newspaper La Reppublica had claimed earlier.... well, you know what they say about denial. CDS at 198-203... Just a reminder - repudiation is a credit event under ISDA.

March 6 (Bloomberg) -- JPMorgan Chase & Co. said it asked Italy’s securities market watchdog Consob to investigate a rumor related to the stability of the country’s finances. The firm also disputes it is marketing a product which implies a negative view on the country’s sovereign debt, JPMorgan said in an e-mailed statement today.


On the other hand, it would be ironic if Italy does default one of these days... just saying. Sphere: Related Content
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CreditTrader said...

Hey Tyler, seeing GE tendering for neg pledge debt...smells like a clean out ready for a big secured debt issue - nasty cramdown for unsecured debtholders...thoughts?

Tyler Durden said...

i didnt see the news but makes sense although i doubt it will be pari with TL. likely second lien. definitely bad for bonds

CreditTrader said...

agreed - thanks.