Billups was a PG playing the SG position, providing defense and scoring for the Clippers. I initially was thinking that LAC might like to get Barbosa, but it would be hard to make the salaries match with any realistic deal. Given that Bayless is proving to be a capable Jason Terry type of player, it got me thinking that the Clippers might like him for one, possibly more years.
The trade would work like this (and works on the ESPN Trade Machine):
TO LAC - Bayless (1 yr @ $3.04M, + $4M QO)
TO TOR - TPE for Bayless + Bledsoe (3 yrs @ $1.6M)
Toronto would acquire a young, decent PG (drafted 18th overall in 2010) that would fit the rebuild. The Raps would potentially address their long-term PG situation (Bledsoe might get a year to learn behind Calderon, if the Raps don't trade him) and be able to address another position with their top lottery pick (ie: SF).
LAC would get a sparkplug off the bench who could play either guard position, as a temporary replacement for Billups. Plus, it would give LAC PG depth to explore trade options for Mo Williams. Who knows, they may even end up keeping Bayless beyond this season if they see fit, or they could extend him and then use him as a trade chip next season. As for Bledsoe, he's essentially 4th on their PG depth chart (3rd without Billups or with Billups playing SG), but stuck for the long-term behind some guy name Chris Paul.
I haven't heard any rumors, but it seems to address needs by both teams without trading any essential pieces from either team... seems to be a true win-win. I'd be curious to hear your thoughts...