The current tight corporate spreads (all-time lows) reflect the same dynamic as the early 1980s: investors didn't trust government (Reagan's policy), so IBM corporate bonds yielded lower than Treasuries because people feared government debt more than corporate debt.
causalpending
Evidence Quote
“when I started my career there were corporate bonds that traded at lower yields than treasury bonds because people were worried about what they thought was you know Reagan's ridiculous economic policy it was IBM for example IBM bonds offered lower yield than the same treasury bond”
Created: 8/10/2026, 10:50:41 PM
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