http://www.aleablog.com/credit-event/ Alea Jacta Est Wed, 20 Aug 2008 16:59:36 +0000 http://wordpress.org/?v=2.6.1 http://www.aleablog.com/credit-event/#comment-915 jck Tue, 18 Mar 2008 18:50:49 +0000 http://www.aleablog.com/credit-event/#comment-915 Noel: It is wider but no way near as wide as before the "rescue." What happened is that the curve has turned back to normal, the 1 year was above 1000 bp and is back below 300 bp. It will converge over time but JPM will have to pay up, I don't think the deal will pass at $2 and the longer they wait the more they will have to pay up, if conditions improve. Noel:
It is wider but no way near as wide as before the “rescue.”
What happened is that the curve has turned back to normal, the 1 year was above 1000 bp and is back below 300 bp. It will converge over time but JPM will have to pay up, I don’t think the deal will pass at $2 and the longer they wait the more they will have to pay up, if conditions improve.

]]> http://www.aleablog.com/credit-event/#comment-914 Noel Tue, 18 Mar 2008 18:23:33 +0000 http://www.aleablog.com/credit-event/#comment-914 I don't have access to intraday U.S., but Markit say that Bear was a lot wider than J.P. E.O.D. as there are doubts the deal will go through I don’t have access to intraday U.S., but Markit say that Bear was a lot wider than J.P. E.O.D. as there are doubts the deal will go through

]]> http://www.aleablog.com/credit-event/#comment-908 jck Mon, 17 Mar 2008 14:50:37 +0000 http://www.aleablog.com/credit-event/#comment-908 They could default, but it will be hard. The Fed is backstopping the asset side and JPM is taking counterparty risk that was previously BS. They could default, but it will be hard. The Fed is backstopping the asset side and JPM is taking counterparty risk that was previously BS.

]]> http://www.aleablog.com/credit-event/#comment-907 Chris Mon, 17 Mar 2008 14:33:26 +0000 http://www.aleablog.com/credit-event/#comment-907 On the call last night, JPM indicated they were only taking BS wokring capital and clearing liabilities -- NOT guaranteeing all their balance sheet liabilities. They could still default under those obligations. On the call last night, JPM indicated they were only taking BS wokring capital and clearing liabilities — NOT guaranteeing all their balance sheet liabilities. They could still default under those obligations.

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