CDS-Bond Basis - Any credit traders in here?
(Probably) rookie question for any credit trader out there:
Why wouldn't you be able to take that trade?
Short T 6.125 08/15/29
Long CVS 9.35 01/10/2023 Corp
Long CVS CDS USD SR 5Y D14 Corp
Earn 496 bps, Lever up, Repeat.
I assume you can't because the basis has been slowly decreasing from -584 on Nov 30, with no apparent big size trade. (HS on BBG)