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If you have CDS data, take ( cds spread changes * the dv01 of the cds / cds notional ) to get a percent change in cds. you can use that as a proxy for bond price volatility. Note that in bad times, cash tends to underperform cds so you need to increase the volatility of your bond relative to the cds. if your cds volatility is 3%, multiple that by say 1.5 ...



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