Are Bonds Suggesting the Economy Will Get Much Worse?

New research shows corporate bonds have been far better at predicting where the economy is headed than anyone thought…In the fall of 2007…. corporate-bond prices were signaling all was not well. .. In a forthcoming paper in the Journal of Monetary Economics economists Simon Gilchrist and Vladimir Yankov at Boston University, and Egon Zakrajsek at the Federal [...]
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