Also, something really odd is going on with Sealy where loans ripped over 500 bps wider, while bonds were unchanged. This is either i) a bad data point, ii) an indication that the credit market has totally lost it, or iii) Pershing Square V was a fund fully invested in Sealy Loans, collected 2/20 for investing all client's capital in hte mattress-maker's loans, blew up, had a $1 billion BWIC, and annihilated the loan trading levels. While iii would be fun, our money is on the first two.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6oPM9RVSwHjstZjteZ0PZYhX6SDGwDr2J7xLAUzhWjni4T-v2HkNEgKnaeTIeFSqchf-Tpd3vGVGQnGSzEIUddwLTAzK0_73VY7jzF7XwTs6TNzJQYt-mMqXfQ1DtAIPkq4QhPNeTEas/s400/6.18.09weeklychange.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjK-SMvN_WabFXA3yQ41sV4mm7U1uMHNSiXbwQdttuq9N00QMKK8S7Fz5lOH2SB6mOPwH0_WL-MiALH-Wph-zysqUUsYJHmJU0waT-VcOhUzW1zOSjQ75HYutz1nfIICHhOmmEfq-LZzA4/s400/6.18.09loans+v+bonds.jpg)
To visualize the phenomenal run up in credit over the past 3 months, the charts below should demonstrate just how foolish some credit portfolio managers have become.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOF1sAP-aaTDXHjL4kpX9Z3avJpZlOY_bdPJXMoi5ID3wo2ZE4MGostDGxh_PNKSYiFHnPjgGRl2UPo6fnx7ifxxVffbIiKi2VwO1-9-I0rA_-kowgNdgm6viMalDT8FAOJfERAVUA6Ns/s400/Hist+Loan+performance+6.22.09.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBMD5NwI_wFTMIY6lODW6EPqzZp3_qVO9tPOcAn0fbPkHjE9227puf501La8gPV2CqmiAhPFQe2PPxTH8r8oKmhyphenhyphenEPBv4_Zkuuc5sgH_k9I2wmBr3MPC-d6m1jXzATFJ-MXe3p7gHs2TI/s400/Hist+bond+perf+6.22.09.jpg)