Junk Bond Spreads Accelerating Higher – Not Good for Stocks

August 01, 2014
By Knowledge Leaders Team in Uncategorized

Earlier this week as asked what junk bonds know that stocks don’t. Since then junk spreads to the 10-year US Treasury bond have widened another 20bps as they have accelerated higher. Given the 88% correlation with stocks over the last year, this is something that we will continue to closely monitor.

Aug 2013-Jul 2014:

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