Commerzbank, the shares are up, but senior CDS is 25 wider and sub CDS is 30 wider. The SNR financials index is 10 wider (sub is only 9 wider). Euro is weak, but more or less in line with stocks. It is the weakness in indices and financials that is most noticeable. It is possible everyone is now piling into the short credit, go long equity trade, but this seems too bank specific to be all the macro guys piling into the same trade – although Bloomberg’s Stephanie Ruhle did mention it this morning.
Cash markets remain relatively strong, though the focus there continues to be new issues – getting em, and flipping em.