Bankruptcy

Morning graph

By Stephen Lubben

From a new dataset of CDS prices I'm working with -- this suggests that even though the credit crisis began in the summer of 2007, the market didn't pick up on Lehman's problems until Spring 2008, and even then really didn't see a problem until a few weeks before the petition date. Aren't these things supposed to help with price discovery?

I've got Morgan Stanley on the graph too for context -- Lehman's a bit more volatile, but not notably different.

Full post as published by Credit Slips on August 28, 2009 (boomark / email).