Not exact matches
In addition, in a world of low yields and
tight spreads, returns to these funds are also likely to be modest, at least
relative to periods when yields were much higher.
This resulted in lower
relative interest rates (
tighter yield
spreads) for Canadian issuers than would otherwise be the case.
So, when yield
spreads are
tight (they are
tight relative to risk now, but could get
tighter), and the Fed nears the end of its loosening cycle (absent a crisis, they are probably not moving until unemployment budges, more's the pity), be wary for risk.