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Commerzbank Recommend Reducing Exposure To Schatz ASW Tighteners

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Commerzbank write “swap spreads continue to grind tighter, and for the first time in more than two years Schatz-spreads trade fully aligned with our long-term fair value model. Although arguments for further tightening prevail, particularly given still substantial forward specialness and net flow dynamics, we suggest reducing exposure with the trade looking increasingly mature.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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