This question relates to how a corporate treasurer can hedge against rising funding costs.Suppose a corporate plans to issue a bond 6 months from now. The yield could basically be divided into three parts: Liquidity Price (for cash) + Credit Spread for Corporate + Swap RateThe swap rate could be hedged but the question is how to protect against a wider credit spread for the entity in question.1. Hedge using CDS on own name. This might work but might also not be allowed in finance policy or it might be that liquidity is too poor or name is not traded. If this option is not possible, consider option no 22. Hedge using a reference basket of CDS. Look for a basket of CDS names that is highly correlated to your own name. Is this a viable option? I looked at a particular name and found a basket with high correlation (80%). However, if I look at 1Y rolling correlation it varies from 60-100%. If I look at rolling correlations on 26 week data and shorter the correlation still around 70% for most of the observations but actually varies from - 0.6 to 1...My thought is if you refinance after 6 months you don't care if correlation is good on average but rather if it is very stable... Hence if correlation sometimes is negative a hedge could actually make things worse.Does anyone know how corporates deal with this, does anyone actually do this or do you need to stick with hedging through own name CDS?