Consider the credit spread, as reflected by the difference in rates between 10year Treasuries and corporate Baa

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Consider the credit spread, as reflected by the difference in rates between 10‐year Treasuries and corporate Baa bonds. In 2008, the spread widened to approximately 4 percent versus the average of about 2 percent. Due to the economic turmoil, investors rushed to Treasury securities (a “flight to safety”), pushing their price up and the yield down.

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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