Thursday, December 04, 2008

Okay, if you bought CCS at my recommendation at $15, I am currently selling that at $17.10 ( 9.76% yield) and putting all proceeds into CCW at $17.35 (10.1% yield).

Even with a bit of commission, it is a nice pickup in yield. More importantly, CCW is larger/more liquid and generally trades at a lower yield than CCS (by like 20bps). That means CCS will normally trade $1.50 below CCW.... so this should be an easy trade.

Or, you can just sell CCS and pocket your 13% over the past week! I like the swap better though, as 10% is a nice yield.

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