Credit Derivative Strategies: Basis Trades selling, question, protection, 361, buying

lunarfollies

Reading 65, page 361.

"An example of this strategy is to buy a five-year British American Tobacco bond at LIBOR plus 60 bps and short a five-year CDS at 46 bps, resulting in a negative-basis of 14 bps"

This isn't sinking in correctly for me. We are long the BAT bond, so wouldn't we want to be protection buyers (ie. buying a CDS?). This question has us Long the BAT bond, and acting as protection sellers (ie. selling a CDS) and the result is a negative basis package of 14 bps.

My logic is:

Long bond @ LIBOR + 60 bps
Sell CDS @ 46 bps

Thus we are increasing our yield. Obviously I'm missing something.

Matt