Calculate the CDS-bond basis as the difference between CDS spread and bond asset-swap spread. Positive basis means CDS is richer; negative basis indicates bond is cheaper relative to credit risk.
Enter the values for the scenario you are assessing. Calculate the CDS-bond basis as the difference between CDS spread and bond asset-swap spread. Positive basis means CDS is richer; negative basis indicates bond is cheaper relative to credit risk. Use the cds basis spread result to inform your calculation.