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Equity Risk Premiums Resume Their Relationship With Bond Spreads After Diverging Widely.

|Includes: SPDR S&P 500 Trust ETF (SPY)

Corporate bond spreads to VIX historically correlate well, however over the lat six months, rising risk in the bond markets was not reflected in the VIX. With this correction the VIX has sharply converged back in line with bond spreads - perhaps a signal that the worst is over for now.