The Ludicrous Deviation Between Bond Spreads and Reality “The current environment may be more uncertain and riskier than any we have seen in our lifetimes. Yet, spreads say the future has never been more certain.” We recently wrote that line in The Markets Are Sending Confounding Messages. The article discusses a “metaphorical fog”, induced by central banks. The fog envelops all market signals and, in the process, take away all means of orientation. Investors, unaware of the fog, are pushing the pedal to the metal with little concern. This article examines the corporate bond fog. In particular, we show how corporate ... (full story)