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Capital StructureEssay Preview: Capital StructureReport this essayWhen identifying relative value opportunities across credit and equitymarkets, the arbitrageur faces two major problems, namely positions basedon model misspeci cation and mismeasured inputs. Using credit defaultswap data, this paper addresses both concerns in a convergence-type trad-ing strategy. In spite of di¤erences in assumptions governing default andcalibration, we nd the.