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Your Trusted Financial Brain !!"#$
Your Trusted Financial Brain With the Ministry of Finance as Shareholder
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The spread between long-duration BAA and government bonds is very close to the highs reached in 1932 (the midst of the Great Depression).
Source: U.S. Federal Reserve, RCM
US corporate bonds generally are
that higher than what actually happened in the 1930s .
Note: Based on the data of Society of Actuaries, the maximum cumulative 5-year default rate was 22.8% in 1934.
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Global Treasury versus Global Aggregate Bond Market Returns: 1973-2009 Source: Barclays Capital, Western Asset
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Source: Merrill Lynch
US, UK, Euro Bond Spreads: Jan 1997- Jun 2009
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Source: Bloomberg as 30 Jun 09
US UK Euro Bond Spreads: Jan 1997- Jun 2009
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JP Morgan EMBI Plus Sovereign Spread (USD)
100 200 300 400 500 600 700 800 900 1000 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
JP Morgan EMBI Plus Sovereign Spread (USD)
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Name YTD 1MO 3MO 6MO 1Yr 3Yr Inception* Inception Date
Bond Fund (CSJ) 9.00% 1.48% 5.88% 10.26% 6.33% n.a 14.61% 1/5/2007
Corporate Bond Fund (LQD) 15.92% 4.88% 12.87% 17.69% 9.54% 19.36% 45.43% 7/22/2002
Corporate Bond Fund (HYG) 26.77% 3.76% 17.14% 40.24% 0.18% n.a
4/4/2007
(CFT) 6.25% 4.21% 12.51% 16.62% 8.48% n.a 14.53% 1/5/2007
Credit Bond Fund (CIU) 12.02% 2.68% 10.18% 14.85% 7.34% n.a 14.73% 1/5/2007
Markets Bond Fund (EMB) 16.69% 3.66% 12.06% 26.98% 5.11% n.a 6.32% 12/17/2007 Remark * annualized return
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