The AAA/10-Year Spread

Here’s a look at the yield spread between AAA corporate bonds and the 10-year T-bond.

I’m surprised this spread hasn’t narrowed much since the worst of the financial crisis. Instead of corporate bonds being underpriced, I’m inclined to think that mid-term Treasuries are overpriced. This is very probably due to the Fed’s policies.

Posted by on November 10th, 2010 at 12:21 pm


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