Moody’s Corporate AAA bond yields vs US 10yr Constant Maturity Yield to 1857

Click to enlarge


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 (

Category: Digital Media, Fixed Income/Interest Rates, Investing

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.

7 Responses to “Corporate AAA Yields vs 10 Year, 1857 – Present”

  1. HighSeas says:

    I just looked up JNJ 10 year yields, and I only get an extra 50bps. Is the AAA line for longer maturities? If so, that is not an apple to apple comparison. And how many AAA credits are left?

    Love your site, Barry.

  2. Robert says:

    I had the same question. Who are the underlying credits with the AAA rating?

    Great content…….getting used to the new format. Thank you BR!

  3. ldaalder says:

    Nice chart, but name me 5 US AAA companies…? And how many have issued bonds of those? And in the 40s?

    I wouldn’t read too much out of this.

    Lukas Daalder

  4. Ralph Dillon says:

    If you would like specifics as it pertains to the metadata, i would be happy to share that privately.
    Contact me at

  5. san_fran_sam says:

    More importantly who is doing the ratings? It wouldn’t happen to be the same BS agencies that rated the mortgage backed securities would it?

  6. Does anyone know a good corporate-bond mutual fund or ETF that is NOT loaded with financial corporation bonds? I would love to be able to lend to companies that actually produce something. But I refuse to lend a dime more than necessary to the giant financials right now. Whenever I go looking at non-government, non-muni, non-mortgage-related bond funds with low expense ratios, I can’t find anything that isn’t loaded with financial paper.