Sentences with phrase «by tight credit spreads»

However, when financial conditions were easing, indicated by tighter credit spreads, the Russell 2000 outperformed by roughly 1 percent a month.

Not exact matches

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

Looking back over the past fifteen years, in months when high yield credit spreads were widening, indicating tighter financial conditions and more risk aversion, the S&P 500 outperformed the Russell 2000 by an average of roughly 0.45 percent.

By looking at how the credit spread for a category of bonds is changing, you can get an idea of how «cheap» (wide credit spread) or «expensive» (tight credit spread) the market for those bonds is related to historical credit spreads.

Financial firms are opaque by nature, and investors should be skeptical of those furthest out on the risk spectrum, particularly when credit spreads are tight.

By that time, the stock market would be much higher, about as high as it was in October 2001, and credit spreads tighter.