We were reading the economics blog The Big Picture yesterday and were particularly struck by this chart of corporate bond rates between 1830 and the present. The data, which comes from Charles Nenner at Cycle Forecaster, does provide some perspective for those deciding what kind of mortgage to get and those predicting interest-rate driven Armageddon. As the blog points out, “This looks like one giant mean reverting system.”
Corp Bonds 1830-2005 [The Big Picture]