cds: 46UF+500.
bonds: curve inverted till 3yr. afterwards at 30-35% YTM.
common: 1.75.
Z (warrants - hybrid debt kicking in on BK): 9.00 (37.5% recovery lock on BK, otherwise about 1 share).

this goes on for few weeks now, implying high prob of default especially judging by Zs and near-maturing bonds (would likely happen on the first maturity at the beginning of Nov09). I wonder if Internotes (pari passu with sen unsec) are cheap (around 47.00) given that on default all is likely to go 50+. if no default then 33% yield is sweet even given the small batches issued (i.e. liquidity premium).

any thoughts?