Uh, Oh,....

Chart below says it all. (I wonder what the standard deviation is on this?)

Chart courtesy of Markit Indexes: http://www.markit.com/information/products/cmbx.html

This AAA rated index (used for hedging) has gone from 94 bips (basis points, 1/10000, 1% of 1%, or 0.01%) to 174 this week. All 27 of the CMBX indexes on Markit hit all time highs today, along with the CDX and LCDX indexes. It looks like someone needs protection fast. Maybe the monolines will be downgraded tomorrow.

I'm thinking of cutting my losses on PDC now that they've rallied, and taking my profits on IPSU.