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Allan Meltzer:
Leadership and Progress
Tim O'Neill:
Globalization: Fads, Fictions, and Facts
Douglas Lamdin:
Corporate Bond Yield Spreads in Recent Decades
Christopher Mills
and Eleonora Omarova: Predicting Currency Crises—A Practical
Application for Risk Managers
Ray Fair: Testing
for the New Economy in the 1990s
Stephen G. Cecchetti:
Monetary Policy in a Low Inflation Environment
Robert Eisenbeis,
Daniel Waggoner and Tao Zha: Evaluating Wall Street Journal Survey
Forecasters
Rajeev Dhawan:
Georgia State University’s Economic Forecasting Center
Book Reviews
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Corporate Bond Yield
Spreads in Recent
Decades
An Examination Of Trends, Changes, And Stock Market Linkages
 By Douglas J. Lamdin
Douglas J. Lamdin is an
Associate Professor of
Economics at the University of
Maryland, Baltimore County
(UMBC). He is also the Director
of the Financial Economics
program at UMBC. He received
his Ph.D. in Economics from
the University of Maryland,
College Park.
Corporate bond interest rates are a subject of concern to
investment analysts, corporate financial managers, and
scholars. In this article the yield spreads between corporate
bonds and government bonds and the spreads
between differing quality corporate bonds are examined
during recent decades. Also, the relationship between
yield spreads and stock market movements is examined.
Yield spreads vary considerably over this period, and
have varying trends. Causality tests show that stock
market movements precede changes in yield spreads.
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