I wrote on December 8 that I thought the yield differential between treasuries and highly rated corporated bonds was unsustainable. Using the relevant etfs for corporate bonds (LQD) and the treasuies the yield differential had widened to 3.99% reflecting a flight to quality that pushed the yield to 3.27.
Currently the yield differential is 2.22%, the investor in the LQD would have gained 2.8% the investor in IEF -2.24% (neither number includes the interest earned).
Worth a look at this point might be HYG the high yield etf with a yield of 11.56% (8.29) over treasuties. It has already gained 9.2% since April 8
charts are above.
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