The segment rates for March went up considerably from Feb. I’m a little confused why this happened . I’m aware it’s somewhat tied to corporate bond rates but interest rates have not Changed. I’m guessing there’s other market forces at work? Can anyone here Provide a little more incite? I’m sure this whole Covid - 19 has something to do with it
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Go here and see what happened to rates in March
https://ycharts.com/indicators/moodys_seasoned_baa_corporate_bond_yield
Apparently interest rates are rising.
https://www.cnbc.com/amp/2020/03/18/interest-rates-are-rising-a-bad-sign-as-the-economy-slides-toward-recession.html
OP here: I’m aware it doesn’t matter until Nov just trying to get a handle on exactly how these values are derived and why they went up so much last month. Thought it was primarily interest rates but corporate bond rates seem to figure into as well
Agreed. What you see now is effective for 2020. The segment rates for 2021 will be decided in late Nov and are viewable in Dec. Let's hope that the corp bond rates are as low as they are now.
not really worth worrying about until november