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Wednesday, April 8, 2009

Abnormal Markets...

High yield bonds are outperforming investment grade corporate bonds, which are outperforming equities (year to date 2009).

How rare is this? Well, this hasn't happened over a full year since 1993 when all three were positive.

And the last time high yield had positive returns, while investment grade bonds and equities had negative returns... well I don't have enough data to tell if that's ever happened.