The US treasury isn’t the only issuer of bonds

The US treasury isn’t the only issuer of bonds

Treasuries. Of course, unlike the federal government, corporations can go bankrupt, leaving their bondholders unable to collect all of their scheduled payments. Because of this risk of default, corporate bonds must have a higher yield in equilibrium than similarly structured Treasury bonds. Under what economy-wide economic conditions, if any, might you expect to see corporate bond yields rise while Treasury Bond yields fell?

Is this the question you were looking for? If so, place your order here to get started!