01-08-2015, 04:42 PM
OK, Eric, I'm trying to figure out what ICAPSD is.
Is the dark line some price of some index? I can't find that designation/symbol on Yahoo Finance. To me, it looks like yield since it's been decreasing since mid-2013. If it's pricing, why is yield going down when pricing is decreasing?
It's obvious to me the red line is XLU's price rising for the past year which we all know is true. Hence, ute yields have been dropping along with the 10Y Treasury which should be expected. We'd expect the yield premium to stay fairly static.
Now if the graph is comparing Treasury pricing with ute pricing, that's just what we'd expect to keep the yield spread but then it gets back to question #1 -- why is pricing going down and yield going down at the same time?
Please educate me because I'm feeling really stupid about now.
Is the dark line some price of some index? I can't find that designation/symbol on Yahoo Finance. To me, it looks like yield since it's been decreasing since mid-2013. If it's pricing, why is yield going down when pricing is decreasing?
It's obvious to me the red line is XLU's price rising for the past year which we all know is true. Hence, ute yields have been dropping along with the 10Y Treasury which should be expected. We'd expect the yield premium to stay fairly static.
Now if the graph is comparing Treasury pricing with ute pricing, that's just what we'd expect to keep the yield spread but then it gets back to question #1 -- why is pricing going down and yield going down at the same time?
Please educate me because I'm feeling really stupid about now.