Sentences with phrase «rising corporate bond spreads»

Nobody is really talking about it but, with the Fed tightening this week amid rising corporate bond spreads, Ray Dalio's 1937 analog continues to rhyme.

Not exact matches

Meanwhile, the spread between riskier «junk» corporate bonds and «risk - free» U.S. Treasurys has dropped since the election even though interest rates generally are rising.

Over time, this suggests rising bid - ask spreads relative to past levels for more illiquid assets, such as corporate bonds, to help market - makers cover their operating costs.

Major equity markets have risen further, and appetite for risk has increased, with spreads on corporate and emerging market bonds falling to levels not seen for several years.

Spreads between yields on highly - rated corporate bonds and government bonds rose slightly over the past three months (Graph 54).

This is in contrast to US and European markets, where corporate bond spreads to swaps have risen over the period.

This leads the corporate bond market default in tandem with rising credit default swaps spreads.

But the Fed is not so sure, and officials note that corporate bond spreads have narrowed over U.S. Treasuries, and that although mortgage rates have risen, they are still low.

Also, the yield spread between U.S. Treasuries and corporate bonds has tightened, meaning credit offers thinner insulation against rate rises.

And even if corporate defaults rise to 4 - 5 %, as many are predicting, current bond spreads would still support investing.

It was notable that Government bonds underperformed corporate bonds by a healthy margin as credit spreads stabilized and government yields rose.