Wednesday, September 10, 2008

Corporate / Mortgage Backed Security Spreads


High Yield Spreads: out close to their cyclical highs; ~800 bps above Treasuries

Investment Grade Spreads: at their cyclical highs ~300 bps above Treasuries (higher than High Yield spreads just last summer)

MBS
Spreads: down a whopping 60 bps and STILL some room to go to reach levels when they were only "implicity" guaranteed by the government

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