At the risk of sounding like an idiot… Yield spread and its effects just clicked!!!
Nobody cares : ( Such a lonely world
OK, explain to me, please.
We are here. MGG…we all love you 
Old Chinese Proverb - “What clicks can also unclick” So beware
Mr.Good.Guy Wrote: ------------------------------------------------------- > Nobody cares : ( Such a lonely world I deeply care. I can sleep tonight and know that when I wake up the birds will be singing and the sun will be shining. The world is safe now for all the little Guy children and Guy grandchildren …
Yes MGG please explain …specifically implications of widening and narrowing of the spread ?
“I know Kung Fu…” “Show me!” So what is it about yield spreads?
I guess I was always confused as to why an increasing yield spread was a “bad” thing… I guess in a lot of questions we are assuming we hold the bonds and when they say the yield is increasing — > We know the interest we receive stays the same so the only way the yield is increasing is if the bond price is going down. Its not much of a breakthrough but it was something.