Tag: coronavirus

Bond Spreads

Bond spreads are an important indicator of risk assessment.  We typically like to assess the spreads between rated corporate debt and the 10-year rate. With the risk-free rate (the 10-year coupon) already at rock bottom, and the market-risk spreads (the difference between the risk-free rate and the nominal rate of interest on bonds) historically low, […]


The coronavirus is a black swan event but is pointing out several fundamental economic issues. First, even with the recent market selloff, the market is trading at historically high multiples. Second, the Fed is out of weapons – the Federal Funds rate is 1.75, the ten year is 0.52% – rates are rock bottom, and […]

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