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Telecom New Zealand revisited

|Includes: DTEGY, ORAN, Spark New Zealand Limited ADR (SPKKY), T, TEF, TELNY, VZ
Last week we reported on Telecom New Zealand CDS hitting close to its tightest levels for the year at 35 bps. This week it appears the CDS has continued its positive downward trend to as low as 30 bps – all this occuring while the stock has hit an all-time low of NZ$2.13 in early trading today and a very high 10+% dividend yield.

While Telecom's stock price has done poorly so far this year, its CDS is one of the best in the telecommunications space and is better than larger players including AT&T, Verizon, T-Mobile parent Deutsche Telecom and other European Telecom companies including France Telecom, Telefonica and Telenor. Is there something credit investors know that stock investors do not?

Disclosure: long all stocks