Treasuries Market Flashes Red, Fed Unleashes Tsunami

In a follow-up blog, we will dive deeper into the underlying workings and function of the short-term funding markets. In liquidity events, cracks always show up first in the funding markets and typically ripple through the entire financial system. Exhibits 5 and 6 show the recent spike in option-adjusted spreads (i.e., perceived risk) in the S&P U.S. Dollar Global Investment Grade Corporate Bond Index and the S&P U.S. Dollar Global High Yield Corporate Bond Index.

1 2
View single page >> |

The information provided is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Graphs and ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.