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Credit Markets Get Even Scarier

Posted on October 10, 2008

John Jansen is scaring me today. Remember the new CDX investment-grade index, IG 11, which just launched? They took the crap out of IG 10 (Fannie Mae, Freddie Mac, WaMu), and put in solid corporates like Xerox XRX) and UPS (UPS). And yesterday IG 11 opened at 176.5bp: Obviously no one wants any kind of credit right now, but those spreads you can live with, if you're not too levered. This morning, by contrast, the IG 11 was trading in the 230bp range. And the new 10-year bond from [[IBM]], which has a market capitalization of $118 billion and total debt of less than $35 billion, is trading at ...

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markets , trading , treasuries