As the chart below shows, BAA bonds are yielding more that 200 basis points more than similar maturity Treasuries.
As recently as July of 2007 spreads were 40 basis points lower.
Friday, October 12, 2007
Corporate/Treasury Spreads Widen
In a further confirmation of the problems in US debt markets, corporate bonds are being pushed farther off US Treasuries.
As the chart below shows, BAA bonds are yielding more that 200 basis points more than similar maturity Treasuries.
As recently as July of 2007 spreads were 40 basis points lower.
As the chart below shows, BAA bonds are yielding more that 200 basis points more than similar maturity Treasuries.
As recently as July of 2007 spreads were 40 basis points lower.
Thursday, October 11, 2007
Credit woes push CDs farther off Treasuries
Markets are giving us a good estimate of the cost of borrowing for CD issuers.
As the chart below shows, CD rates are relatively constant over the past year or so, while yields US Treasuries have fallen substantially.
Spreads have widened to more than 150 basis points in the past few months as investors have bid up Treasuries.
The question investors will now be asking is "Will the spread continue to widen?"
As the chart below shows, CD rates are relatively constant over the past year or so, while yields US Treasuries have fallen substantially.
Spreads have widened to more than 150 basis points in the past few months as investors have bid up Treasuries.
The question investors will now be asking is "Will the spread continue to widen?"
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