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CDS Hunting Season
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CDS Hunting Season

CDS Hunting Season

by The MoleSeptember 17, 2008

It’s on! Watch every company with exposure in credit default swaps (CDS) get wiped out in the coming weeks.

BTW, I’m going to massively hedge myself tomorrow as the AIG backdoor bailout just kicked the lid off the chart I posted earlier. Of course in true fashion the permabulls are all giddy about this and chances are we but through 1228 at the open (futures are currently lower but I’m not fooled) and then it’s off to the races. Of course, anything can happen in this loony market, thus in my mind anyone not in possession of a working crystal ball effectively has two options at this point:

  • Go into cash.
  • Hedge yourself to delta neutral.

And just for the record – I love unintended consequences. Or, as the saying goes: The road to hell is paved with good intentions.

P.S.: No, that’s not me in the video – I’m a lot more handsome.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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