Friday, June 29, 2007

When to trade borker-dealer credits

The best time to go long risk with respect to brokers in the last five years has been when spreads gap out on market fears. The trade worked earlier this yeasr: it worked when GM was downgraded, and it worke most reently when spreads gapped out due to fears of inflation. Will it work again this time when subprime market suffers(BSC hedge funds stumble).

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