The Merrill - BofA CDS Decompression Trade

With any predictive quality the equity market might have had long dead and buried, the only somewhat sane place left for investors looking at even a modicum of rationality is the CDS market. And something there is afoot, at least when looking at the Merrill - BofA decompression trade, which over the past few days is getting back to levels last seen when Lewis was discussing splitting investment from commercial banking. The outcome of tomorrow's shareholder meeting is getting more and more interesting: judging by CDS levels, one could ask if someone knows something?

Update: Calpers has just joined the ranks of Lewis dissenters ahead of the shareholder meeting tomorrow. This is likely game over for the CEO.



hat tip Credit Trader Sphere: Related Content

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