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UniCredit recommends Siemens-STMicroelectronics relative value trade

Monday, November 9, 2009

UniCredit analysts recommend selling five-year protection on Siemens at 64 basis points and buying protection on STMicroelectronics at 58bp for a pick-up of 6bp in today’s research. The relative value trading idea is made based on the fact that Siemens is better rated with a better rating outlook, while ST’s five-year CDS is expected to trade wider than Siemen’s once market volatility increases

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