Scenario No One Is Talking About | Bond Spreads Above Fed Funds Smallest Since 2007

Derek Moore is back to talk about the one thing no one seems to think is a possibility with interest rates. Plus, why the tightening of the triple BBB corporate bond spreads above 3-month Treasury Bills and Fed Funds is something to watch for markets. Then, Derek explains the 4 stock market scenarios people are watching.

Disconnect between market expectations and the Fed

Spread between corporate bonds and treasuries narrows

BBB Corporate bond spread to Fed Funds smallest since 2007

What do interest rate spreads mean?

How are interest rate spreads calculated?

What happens when spreads widen or narrow in bonds and stocks?

What are Overnight Reverse Repos

Fed Funds ranges vs exact rate

What is the effective fed funds rate

Where to find the fed funds rate

CME Fed Interest Rate probability tool

The federal reserve dot plots

Mentioned in this Episode:

What are Overnight Reverse Repos ON RRP that Fed is using nowhttps://open.spotify.com/episode/09VOIffldtn3WxNm7rzyNx

Effective Fed Funds Rate https://www.newyorkfed.org/markets/reference-rates/effr

See Probabilities of future Fed Funds hikes or lowering https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

The triple BBB bond spread https://fred.stlouisfed.org/series/BAMLC0A4CBBB

Wall Street Journal banks predict recession and Fed Pivot in 2023 https://www.wsj.com/articles/big-banks-predict-recession-fed-pivot-in-2023-11672618563

Prof Aswath Damodaran market scenarios post https://aswathdamodaran.blogspot.com/2023/01/data-update-2-for-2023-rocky-year-for.html

Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek [email protected]