risk free pair trade ==== buy C short BAC
- Thread starter apitrader
- Start date
Short both. Comes closer to a "risk free trade" !
In a free market, C and BAC would gradually tumble towards zero.
However I find it hard to believe that the US government is willing to formally nationalise these two companies, despite already throwing huge amounts of preference shares into the two zombie banks.
Therefore I think it's possible that a future bailout / insurance for toxic debt would be provided on generous terms, similar to the C bailout from November.
As sad as it is for US taxpayers, C and BAC shares could rise if/when the next bailout is announced.
However I find it hard to believe that the US government is willing to formally nationalise these two companies, despite already throwing huge amounts of preference shares into the two zombie banks.
Therefore I think it's possible that a future bailout / insurance for toxic debt would be provided on generous terms, similar to the C bailout from November.
As sad as it is for US taxpayers, C and BAC shares could rise if/when the next bailout is announced.
Quote from ASusilovic:
Short both. Comes closer to a "risk free trade" !