Valuation informed
indexing narrows the spread of the data considerably.
Valuation Informed
Indexing narrows the spread at a slight reduction in the median balance (the middle values).
Not exact matches
This
narrowing spread between the
Indexes serves as continuing evidence that the primary trend of the market is actually growing increasingly positive.
The unsurprising result would be that the RAFI
index should outperform the Merrill Lynch
index when credit
spreads widen, and underperform when
spreads narrow.
With a wide
spread between the futures and the cash (the futures are too expensive relative to fair value), buying stocks and selling futures drives the cash
index up and the futures down, which
NARROWS the
spread, returning it to fair value.
These uncertainties may partly explain the typically weak correlations found between paleoclimate
indices and climate projections, and the difficulty in
narrowing the
spread in models» climate sensitivity estimates from paleoclimate - based emergent constraints (Schmidt et.
Spreads on the AAA CMBX
index have
narrowed by more than 85 basis points over the past three months.
Spreads on the AAA and BBB CMBX
indices have
narrowed by over 130 basis points and 1,500 basis points, respectively, over the past three months.
CMBS
spreads declined in response to the announcement, with the AAA CMBX
Index spread over swaps
narrowing by about 200 basis points from late April through mid-May.