Moody’s Corporate AAA bond yields vs US 10yr Constant Maturity Yield to 1857
There is a tendency to look at the S&P500 Dividend Yields vs US 10 year, but in many ways, that is a less than ideal comparison. Corporate Bonds are more of an apple to apple comparison.
Note that there is an almost 200 bps spread over the US 10yr — nearly double the dividend yield of the S&P500.
We keep talking about how the “Great Rotation” into equities from bonds has not yet happened, but folks looking for yield may wish to pay more attention to AAA rated corporates.
Ralph M Dillon (firstname.lastname@example.org)
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.