Revisiting the Yield Curve Basics.Why does it Matter ?

Let me revisit the basics on Yield spreads, that whether Yield spreads can judge the risk environment in an economy ?images

Yield spreads are good tools to judge the risk environment in an economy a lower yield spread means that the issuer of debt is in a situation to demand loans at a lower spread above the yield of government security which in turn shows the presence of ample liquidity.

As far as economic growth is Continue reading “Revisiting the Yield Curve Basics.Why does it Matter ?”