A hedge is supposed to be a cheaper bet that pays off if a primary bet isn't profitable.
With a leveraged bond portfolio, my understanding is that a credit default swap (CDS) can help hedge, but I'm not sure what the premiums are to hold the CDS.
Bond interest rates being so low, any leverage and protection comes down to almost pinching pennies to maintain a target yield, the cost of the hedge can drastically affect the viability of the strategy.
Based on the premiums to hold CDS, and the costs to hold bonds on margin (assuming till maturity, any time frame), are CDS an adequate low cost hedge? What consequences or considerations in forming this hedge would be necessary