There are many questions about Carl Icahn's position, or lack thereof, in Valeant Pharma (NYSE: VRX) following an interview at yesterday's DealBook conference which was streamed on CNBC.

"I'm not in Valeant," Icahn initially said. Then he said "Well... I don't want to say I'm not completely in it... but I'm not going to tell you where I am with it."

Based on these comments, traders believe Icahn could be shorting the bonds or buying CDS, or some other trade related to the company's debt.

Valeant CDS, or the cost to insure against a debt default, has surged in recent weeks following allegations of fraud.

Yesterday, Bloomberg highlighted the company's ballooning debt, which is now at 7 times Ebitda, compared with a median of 2.3 for members of the Standard & Poor’s 500 index.

In the past, Mr. Icahn and noted Valeant long Bill Ackman had a feud over Herbalife (NYSE: HLF), which Ackman is short and Icahn long, however Icahn said the two are now "friends."

Below is the interview: