A fellow blogger askes about quality spreads.
The commercial paper market is looking better. Those quality spreads are narrowing and three of the four curves that the Fed reports are normal.
Quality spreads in the corporate bond market are another story. We haven't had daily reports on the high-yield index for about a year. Too few trades have kept that number out of the press (Internet) lately. I can't calculate my favorite risk measure, the high-yield/ten-year spread, without this number.
5 comments:
So if the high-yield isn't being published reliably then we need to find a proxy for it.
anonymous :
Reliable yield spreads? Try NowAndFutures.com, these guys have recreated M3 and they may have what you seek. Quality info, but you will have to go hunting a pecking.
I noticed that Paulson on 6-19 will make a statement advocating new oversight powers be given to the Fed. Correct me if I am wrong, but I think those powers had been granted to the SEC and not a banking cartel.
Of course the SEC has fallen asleep at the switch repeatedly. The question is what regulatory body should have the responsibility for this.
The fed is way too political to play this role.
So now free market forces are truly at work, correcting the wrong.
Let us know if anyone finds a proxy for the high-yield index! Deb
For Junk bond /high yield data go to :/www.mlindex.ml.com/gispublic/bin/MLIndex.asp
Dave
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