vodka_tonic

Risk Premia Widens to Seldom Seen Levels

"risky assets will perform poorly."
why ? because they are paying more for credit. not a very strong correlation.
"However, the abnormally high risk premia we are currently seeing indicate that longer-term investors will be paid more handsomely for accepting such risks than they have been paid on average in the past."
i agree the spike does suggest good return opportunities in corporate debt, based on historical data. however, i am not sure why you are saying "better than the past", based on the graph it should be inline with the prior spikes, other factors excluded.