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Sears Plunges As CIT Reins In Loans (Again)

By: capt_nemo in ROUND | Recommend this post (0)
Tue, 31 Jan 12 10:10 PM | 41 view(s)
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Submitted by Tyler Durden on 01/31/2012 10:54 -0500

CDS
CIT Group
Reuters
Sears

While so many were hoping for the siren-call of private-equity or perhaps a reverse-merger MBO with RadioShack, CIT has once again managed to pour well-risk-managed-credit-extension cold water on Sears short-squeeze. SHLD is down 6% following Reuters reports (via The Orlando Sentinel) that CIT will again stop providing loans to suppliers of Sears Holdings as the lender/factor awaits further information of the company's health. Volume picked up dramatically as the stock fell and we note that SRAC (the more active 5Y CDS contract) is leaking wider but has surged around 400bps (to 1800bps) in the last week (as the stock has been treading water off its spike squeeze highs on 1/23).

charts

http://www.zerohedge.com/news/sears-plunges-cit-reigns-loans-again?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29




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