U.S. High Yield Spreads vs. IG Spreads and Large Cap Growth Relative to Small Cap Value This chart suggests that new highs in stocks need high yield outperformance and sustained rotation from large cap growth to small cap value. Image: BofA Global Investment Strategy
Yield Spread (Baa Bonds – Utility Dividends) Chart suggesting that utilities are cheap relative to Baa bonds. Image: Morgan Stanley
High Yield Spreads – Implied Default Ratio vs. Moody’s Forecast High-yield spreads suggest a severe recession similar to the global financial crisis. Default ratio at 16.1% (12m). Image: Swedbank Research
High Yield Spread to Worst Is the panic over for high-yield bond investors, as global coronavirus fears intensify? Image: J.P. Morgan
10Y-3M Treasury Yield Spread After First Rate Cut and Recessions After the first Fed rate cut, a steepening of the U.S. 10Y-3M yield spread could suggest a recession is coming. Image: Charles Schwab
Yield Spread (Baa Bonds – Utility Dividends) This interesting chart suggests that utilities are currently cheap. Image: Morgan Stanley Research
U.S./German 2-Year Yield Spread vs. U.S./Euro Foreign Exchange Rate This chart shows the Euro vs. US Dollar (EUR/USD) and how a wider U.S./German 2-year yield spread corresponds to a stronger US dollar. R² = 0.62 since 2005.
U.S. 10-Year/3-Month Yield Spread and Recessions This chart shows that inversions of the U.S. 10-Year/3-Month yield spread have preceded recent recessions Image: Bloomberg
U.S. 10-Year/2-Year Yield Spread vs. Fed Funds Target Rate Interesting chart showing the U.S. 10Y-2Y yield curve steepness versus. the Fed funds target rate (inverted). Image: Credit Suisse
10Y-3M Treasury Yield Spread Adjusted for QE and QT Adjusted for quantitative easing (QE) and quantitative tightening (QT), the 10-year minus 3-month yield curve may have inverted in December 2018. Image: Morgan Stanley Wealth Management