tag:blogger.com,1999:blog-11027528911364475.post6573647317782341002..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Quality Spread Rotation...Jakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11027528911364475.post-68774896667677005632010-03-17T19:42:24.043-07:002010-03-17T19:42:24.043-07:00thanks david! didn't mention this last time yo...thanks david! didn't mention this last time you posted, but really like your work.Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-27381706031423407472010-03-17T16:11:46.726-07:002010-03-17T16:11:46.726-07:00When yields are low, equities thrive because finan...When yields are low, equities thrive because financing costs are low.<br /><br />When the defaults come, future equity returns are low, because financing rates rise, killing some and wounding others.<br /><br />When yield spreads are very high, future equity returns are high, because returns come as spreads tighten.<br /><br />You can see more on pages 14-22 of this presentation that I gave:<br /><br />http://alephblog.com/wp-content/uploads/2009/11/SEAC_Presentation.pdfDavid Merkelhttps://www.blogger.com/profile/05073877918072914309noreply@blogger.com