UBS is Making Markets in Muni Derivatives AGAIN

Muni CDS – Wall St banks are accelerating their presence in the muni CDS market; UBS has started making markets in muni derivatives for the first time in two years while a group of large banks is working to standardize paperwork for CDS tied to the securities.  The issue is “politically explosive” and the banks involved could risk a backlash from the states (California is going to force all its debt underwriters to disclose all CDS trades conducted on the state’s debt).  WSJ   http://on.wsj.com/dEn1sT