You believe spreads will return to normal levels

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Reference no: EM131990890

An historical analysis of 1yr yield spreads has shown that sovereign yields are typically 65% the size of corporate yields. At present, 1yr sovereigns are offering 4% while 1yr corporates offer 5.5%.  What course of action should you take if you believe spreads will return to normal levels?

Reference no: EM131990890

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