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A 10-year US Treasury yields 3.50%. A Metalastan 10-year hard currency sovereign bond trades at 8.50% or 5% above the US Treasury bond. If you

A 10-year US Treasury yields 3.50%. A Metalastan 10-year hard currency sovereign bond trades at 8.50% or 5% above the US Treasury bond. If you go long the Metalastan bond and short the US Treasury, you are hedging out:

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Metalastan sovereign credit spread risk

US duration risk

Metalastan duration risk

US stock market risk

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