NMR - Morgan Stanley had 'disturbing' widening in credit default swaps late last week expert says
Morgan Stanley (MS) had a "disturbing widening" in its credit default swaps late last week relative to the CDS of other banks such as Goldman Sachs, Credit Suisse and JPMorgan, Lawrence McDonald, former head of macro strategy at SocGen said."You have something going on there," McDonald said in a CNBC interview. "Now it's not like 2018ish, no way ... but it's the beginning of something. You want to watch credit risk because credit leads equities."McDonald's comments come after Credit Suisse (CS) warned of "significant losses" due to the Archegos Capital liquidation. Nomura (NMR) yesterday said a U.S. unit may have a $2B loss due to a U.S. client, cancelled a bond issue.Morgan Stanley along with Goldman Sachs (GS) and Deutsche Bank (DB) were some of the banks selling large blocks of trades for Archegos last week, according to reports.Morgan Stanley fell 3.4% in premarket trading. Nomura ADRs are down 14%, while Credit Suisse dropped
For further details see:
Morgan Stanley had 'disturbing' widening in credit default swaps late last week, expert says