Credit markets are accurately stating UAA's credit risk with a YTW of 5.912% relative to an Intrinsic YTW of 5.737%, while CDS markets are overstating UAA's credit risk with a CDS of 225bps relative to an Intrinsic CDS of 138bps. Furthermore, Moody's is overstating UAA's fundamental credit risk with its Ba2 credit rating four notches below Valens' IG4+ (Baa1) credit rating.
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