Market Risk Signal – Its Probably Not The Time To Be Buying A Bunch Of Junk Debt
by Dave There is a very old indicator for perceived credit risk in the market; its the interest rate spread between BAA rated bonds, and AAA rated bonds. It represents market players moving money between 2 different trades: BAA: “I want to maximize interest payments” AAA: “I’m worried about not getting paid back.” Here’s what … Read more