S&P 500 Dividend Yield vs. A-rated Corporate Bond Yield
December 4, 2012 1 Comment
QUESTIONS + THOUGHTS
- How do (changes in) tax policy affect the above? For issuers and investors alike?
- Under what conditions might the dividend and corporate bond yields asymptotically converge ? Better yet, under what conditions might the corporate bond yield dip below the dividend yield?
- What are the most asymmetric ways to express directional bets (in either direction)?
- Need to compare against other instruments, e.g. USTs, munis, REITs/Utilities/MLPs, high yield, etc.
- Wonder how spreads in other countries, say Japan, fare…