The market is about to hit new highs and Jc Penney CDS are about to blow out again. “Montauk Bill” likes JCP, so much, he might have purchased that 10 million share block from Vornado last night. Nonetheless, the smart money is taking out insurance on JCP debt, via credit default swaps.
We’re at the 5 figure mark now, +300% over the past 12 months, with no end in sight.
JCP 5yr CDS
They will need to raise money in 2013 and it is going to be punitive to shareholders.
Here are current quotes on JCP paper. As you can see, the older the maturity, the worse the price gets.
Disclosure: I am short JCP
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Companies who can’t wait to poach an AAPL employee for a managerial position may now think “Was it Jobs that made him look that good?”
How about SWHC? Kickin ass
That chart is blurry, Fly, I can’t read it. I just bought some RDM and MTG to put a stop to the ridiculous MOmentum – irrational stuff – we can’t have this efficient market marking stocks up 10 and 15% – can we? Absurdities must stop now!
click on it