Bond Yields Premiums

Since mid-October, the spread between low-risk bond yields and higher-risk bond yields has widened dramatically. Here’s a look at the difference between BAA bond yields and AAA bond yields.

The ratio is the AAA yield divided by the BAA yield. The ratio is now at its lowest level in nearly five years.
Since 1986, the market is net down when the ratio is below 0.85.

Posted by Eddy Elfenbein on March 6th, 2008 at 6:59 am

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