58 per cent spread to Treasuries
at the end of November, has fallen about 8 per cent this year.
Demand for Russian Eurobonds was caused by the market oversoldness, excessive spread to Treasuries
, as well as fading lower likelihood of QE3 reduction in the near term after unemployment data.
High-coupon mortgages, for example, are unattractive when interest rates are declining, which pushes out their spread to Treasuries
The Crescent Portfolio also looks for corporate bonds that offer a positive spread to Treasuries
While this adversely impacted earnings for the third quarter, Delta has responded to the effect of the pricing dynamics in the current asset-backed market by increasing the current spread to treasuries
on its loan originations, as have many other lenders in the sector.