Traders glimpse daylight as Fed rescue of Bear sinks in

28 Mar 2008

Credit markets now trust that brokers will not be allowed to fail. While it is too early — much too early — to speak of the credit markets having turned a corner out of the dark alley that has held them for eight months, this week there was a distinct and unambiguous recovery in the credit default swap market.

Traders resisted being thrown off their feet by reports that there had been a buyer of 10,000 July puts on Lehman Brothers yesterday (Thursday) — information that very recently might have been accompanied by mass protection buying and wild panic.

"We took this easier than we would have done ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial