The most recent improvement in The Conference Board LEI was largely the result of monetary policies and improved stock prices, although business failures (inverted) and the yield spread
were also strong positive contributors to the LEI in the second half of 2014.
We use past values of the yield spread
and GDP growth to project what real GDP will be in the future.
90 while the yield spread
tightened slightly to 107 basis points.
We use a sample of 13,037 yield spread
observations of industrial issuers from 1994 to 2005.
Pairwise cointegration tests are conducted by regressing each country's yield spread
versus Germany on a constant term [[beta].
The milestone moment will be largely driven by a fall in the prime/secondary yield spread
resulting from the improving economic situation and an increasing appetite for risk among investors.
The yield spread
between this issue and a longer-term bond of Promsvyazbank (-/Ba2/BB-) PROMBK-19 has been in place only since June 26.
The economic fundamentals include the federal funds rate and interest rate spreads, such as the 1-year-1-month LIBOR spread and the 10-year nominal Treasury--10-year Treasury Inflation-Protected Securities (TIPS) yield spread
What this means is if the same money is spent on options, and the patterns of the historic stock market repeat, the returns will come out pretty much the same over the long haul whether you use an annual point-to-point or a yield spread
or averaging or a monthly cap.
State-controlled Qtel, via its Qtel International Finance arm, is planning to sell $900 million in five-year notes at a yield spread
of 415 basis points over comparable US Treasuries, said IFR, a Thomson Reuters service, and confirmed by the sources.
Critics say yield spread
premiums are partly responsible for spiking foreclosures.
Also, while bond yields clearly influence business cycle conditions, there is less reason to expect feedback from the yield spread
to business cycle conditions.