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IG On-the-run Spreads (Jul 14)

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IG6 Spreads (Jul 14)

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IG7 Spreads (Jul 7)

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IG8 Spreads (Jul 14)

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IG9 Spreads (Jul 14)

First Bear Stearns, and now the agencies confirm the government is there to ‘write the check’; so, I expect credit spreads to continue to narrow over time.


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3 Responses

  1. Warren, finacial stocks continue to get pummeled, with speculation of more banks going under. Feels like a death spiral, at some point doesn’t it begin to have an impact on aggregate demand. Even with the well scripted coreography by the fed, treasury and congress in dealing with the GSE fallout doesn’t seem to stem the selling…what could stabilize the markets.

  2. Yes, there is concern that it hits demand as banks pull back on lending and good credits can’t borrow.

    Seems to me that’s not happening. Good credits can borrow, though maybe at somewhat higher rates, and all the while q3 GDP estimates are now in the 2% range with upside potential from there.

    Fiscal policy is a very real and very powerful tool, in stark contrast to ‘monetary policy.’

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