Credit Suisse Tips Switch Into CDS

Credit Suisse Tips Switch Into CDS

Credit Suisse is recommending clients get out of cash bonds, where the upside is limited, and move to CDS. "Holders of 5-year bonds, particularly in Peru, Colombia and Brazil, should consider switching into 5-year CDS," says the shop. "The five-year CDS are usually most traded and offer better liquidity than the bonds," it adds. According to Credit Suisse, most of the short-dated EM sovereign bonds are trading less than 50bp over the swap curve, with Brazil 2012s tightening more than 70bp over t

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