Beglium-Dexia CDS Compression Update – 110 bps In One Week

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A week ago, after we had already correctly predicted the unwind of the Dexia long CDS trade on the way up in advance of the bank’s nationalization announcement, we suggested a Belgium-Dexia compression trade, now that the bank is the ward of not only Belgium but France. Quite obviously, the idea is that Dexia may well trade inside of Belgium once…



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