exactly what your 44bps refers to? It sounded initially like you were decrying the flatness of the yield curve by reading the TED (Ten year treasury vs 3mo EuroDollar) spread, than you started on about coprporate defaults. Any particular credit rating and tenor you were looking at there? Time was when a AA+ ten year would have been cheap at 44 over treasuries.
Did you mean T-Bills (the really short stuff), or T-Notes/Bonds? TBills+44 on 3mo commercial paper is a different prospect from Treasuries+44 over 5 years for the same credit.
Not (for once) simply being picky, I'm just trying to understand your data point. Your general point about risk transfer causuing a market misperception of aggregate risk remains valid of course.
PS My games weekend has been fixed for 8/9 Ocotober - any interest?
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Would you explain
Date: 2005-09-18 07:41 pm (UTC)Did you mean T-Bills (the really short stuff), or T-Notes/Bonds? TBills+44 on 3mo commercial paper is a different prospect from Treasuries+44 over 5 years for the same credit.
Not (for once) simply being picky, I'm just trying to understand your data point. Your general point about risk transfer causuing a market misperception of aggregate risk remains valid of course.
PS My games weekend has been fixed for 8/9 Ocotober - any interest?