Thanks to the Fed, We Have Narrow Spread

Today will be rhyming day...

While the broad economic recovery has been teetering along, assets classes have been another story. Agency MBS is now trading at Treasury levels (i.e. no spread) and Investment Grade Credit spread is at narrower than levels seen in June '08 (i.e. pre "system might crash"). I think "we've come a long way in 12 months" is probably too much of an understatement.



Source: Barclay