Quote for the day:
Famed economist John Maynard Keynes had a line about this a ways back, when he said: “The market can stay irrational longer than you can stay solvent.“ -Deal Journal
We'll see - "Attached Liquidity" is easing as we speak:
NEW YORK, Aug 22 (Reuters) - The cost to insure the debt of U.S. mortgage lenders and insurers fell on Wednesday with CIT Group's (CIT) debt protection costs falling 100 basis points to 295 basis points, according to data by CMA DataVision.
Credit default swaps on Countrywide Financial Corp.'s (CFC) home loan unit also fell around 40 basis points to 317.5 basis points, while Radian Group Inc's (RDN) default swaps tightened 60 basis points to 495 basis points, CMA said.
Mortgage companies, which have been badly beaten up in recent weeks, are rallying as stock and bonds rise globally.
The U.S. investment grade credit derivative index tightened 6.85 basis points on Wednesday to 65.75 basis points, according to CMA.
The debt protection costs of bond insurers also fell with MBIA Inc.'s default swap spreads tightening 23 basis points to 130 basis points, CMA said.
