Traders glimpse daylight as Fed rescue of Bear sinks in
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.
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