Macro View February 10, 2013

With Treasury yields rising to near nine-month highs, it’s time to peak into the credit markets and see what other rates are doing. Today we’ll look at interest rate swaps, corporate rates, spreads and discuss high yield debt.

As a reminder to what keeps fixed income investors up at night, the following educational piece is also included.

Inflation Risk: If inflation exceeds the interest rate, the investment on a real basis (inflation adjusted) will lose money.  I recently showed how the 10 year Treasury for example was trading below the inflation expectation. In this case