Arbitrage in the first half of 2025 was healthy, supported by wider asset spreads and tighter liability prints. In the second half of 2025, however, it generally ranged between 144 and 156 bps. When volatility spiked in February 2026, arbitrage improved to levels seen in early 2025, although it subsequently narrowed again, with the latest readings in the range of 150–160 bps.
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