So … without further ado, here’s a plot of yields, going back 10 years. PerpetualDiscount yields are from the HIMIPref™ Index<\/a>; other yields are courtesy of the Bank of Canada<\/a>. The graphs get cut off at the end of March, 2008, because that’s the data I have convenient for the HIMIPref™ indices; Long Corporates get cut off in mid-2007, because that’s when the Bank stopped getting bond data with permission to redistribute freely.<\/p>\n … and the Perpetual Discount Interest Equivalent Spread against Long Corporates (using a constant equivalency of 1.4x, which is fishy in the extreme):<\/p>\n So folks … we’re bloodied but unbowed! Spreads are (roughly) near a ten year high … recall my note of yesterday that PerpetualDiscounts now have an average yield of 6.00%; interest-equivalent (at 1.4x) of 8.40%; vs. Long Corporates of just under 6.2%.<\/p>\n","protected":false},"excerpt":{"rendered":" I don’t, as a rule, like pseudo-analytical notes such as this post. Historical plots implicitly assume that the anything not intrinisic to the plot is constant; and in plotting historical yields there’s an entire economy …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,28],"tags":[],"class_list":["post-2270","post","type-post","status-publish","format-standard","hentry","category-index-construction-and-reporting","category-spreads-to-bonds"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2270"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2270\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2008\/06\/rawyields_080618a.jpg\")
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