On bond spreads, is this not in part because of the US fiscal deficit, the record amount of issuance that’s coming, and the unwind of Yellen’s focus on the short end. So everyone is bearish treasuries distorting the ‘risk free rate’. When you look at the nominal yield on corporate debt it is attractive, especially in comparison to the expected return on equities at these valuations. I think there was another time when eg IBM debt was pricing inside government bonds.
On bond spreads, is this not in part because of the US fiscal deficit, the record amount of issuance that’s coming, and the unwind of Yellen’s focus on the short end. So everyone is bearish treasuries distorting the ‘risk free rate’. When you look at the nominal yield on corporate debt it is attractive, especially in comparison to the expected return on equities at these valuations. I think there was another time when eg IBM debt was pricing inside government bonds.
Oops! I swear I'd not even heard of DeepSeek when I wrote that
See, you jinxed it 😆