12:20 PM Another troubling data point regarding China: CDS spreads for Chinese debt have taken off today, reaching the 200bp level. Meanwhile, UBS is out with a negative report on the country, forecasting GDP growth will decline to 7.7% in Q1, as softening exports have a domino effect on manufacturing, investment, and consumption.
9:46 AM Spreads widen on Morgan Stanley (MS -5.4%) five-year CDS to 455 bp, highest since March 2009. Bank of America’s (BAC -1%) spread also is up 3% to a record 410 bp.
