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Corporate Bond Spreads: Bullish Until They’re Bearish
marketsci.wordpress.com - 11/18/2008
Corporate Bond Spreads: Bullish Until They’re Bearish
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In this post, inspired by Crossing Wall Street , I’m going to look at the spread between AAA and BAA-rated corporate bonds and show that, generally speaking, high spreads have been bullish for the stock market, except when spreads reach extreme heights (like they have at this very moment). A ...
Corporate cost of borrowing
krugman.blogs.nytimes.com - 11/20/2008
Corporate cost of borrowing
— krugman.blogs.nytimes.com — It's the real thing The figure above shows the real interest rates on corporate bonds, with the... expected rate of inflation from the spread between 20-year TIPS and 20-year Treasury rates. All data monthly, from St. Louis Fed. The surge in real ... (more) Corporate cost of borrowing

Comments vote down Marginal Revolution found this 11/20/2008found this
Corporate Bond Spreads
crossingwallstreet.com - 11/14/2008
Corporate Bond Spreads
— crossingwallstreet.com — Here’s a fascinating look at corporate bond yields over the past 90 years. I got the data... off the Federal Reserve Bank of St. Louis’ data bank. This chart shows the yields of Moody’s index of Aaa and Baa seasoned corporate bond yields. You’ll ... (more) Corporate Bond Spreads

Comments vote down World Beta - Engineering Targeted Returns and Risk found this 11/14/2008found this
krugman.blogs.nytimes.com - 11/21/2008
Don't panic about the stock market
— krugman.blogs.nytimes.com — Panic about the credit markets instead. Interest rate on 3-month Treasuries at 0.02%; interest rate on high-yield... (junk) bonds over 20%. This is an economic emergency. (more) Don't panic about the stock market

Comments vote down EconomPic found this 11/21/2008found this

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CrossingWallStreet.com:  More on Corporate Bond Spreads and Their Impact on Equities

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Blog Reactions

More on Corporate Bond Spreads and Their Impact on Equities
CrossingWallStreet.com — ... from last week, and finds that "high spreads have been bullish for the stock market, except when spreads reach extreme heights (like they have at this very moment)." ...

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