Trade Idea

Dislocation on the long end between CNRCN 4.45% 2049 and WM 4.15% 2049

BUY

CNRC 4.45 01/20/49

US136375CV26
SELL

WM 4.15 07/15/49

US94106LBK44

We identify a significant dislocation in the Industrial sector between Canadian National Railway Company 4.45% 2049 (CNRCN 49's) and Waste Management 4.15 2049 (WM 49's). While CRNCN 49's have widened by 35bps since the beginning of April, WM 49's have tightened by 10bps. The z-spread difference, which has been stable at -15bps for the last year has now increase to +28bps. Holders of WM have the opportunity to take profits and capture a higher spread for the same maturity and 2 notches better rating.

Z spread Difference using IHS Zspreads
Pair analysis with TRAC as pricing source for CNRCN and TRMT as pricing source for WM
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