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Tag Archive: term bonds


Recently sharing and discussing on the economic growth and the debt market yield spread impact recalled me some blogwork I did in the past and its worth sharing,

The abstract was based on the evidence that yield spread can serve as a leading indicator of economic activity.It’s important to understand few basic concepts before moving forward:

YIELD SPREAD: The difference between yield of long-term debt and short-term debt instrument is known as yield spread. Higher the difference between instruments greater will be the yield spread.

For example, if the 05-year Treasury bond is at 3% and the 20-year Treasury bond is at 4%, the yield spread between the two debt instruments is 1% (4% – 3%). Continue reading

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It’s not mandatory that all good investors are good writers and visa viz that all good finance writers are good investors. It’s the experience of the people who is good or bad that counts . Here again some of the best remarks from Peter Lynch :

  1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
  2. Gentleman who prefers bonds don’t know what they are missing.
  3. Never invest in any idea you can’t illustrate with a crayon.
  4. You can’t see the future through a rear view mirror
  5. There’s no point paying Yo-Yo Ma to play a radio.
  6. As long as you’re picking a fund, you might as well pick a good one.
  7. The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
  8. Continue reading

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