Credit-Market Mania Crushed “Yield Spreads” & Risk Premiums, but Corporate & CRE Borrowing Costs Are Still Much Higher

Measures of “financial conditions” and “financial stress” have loosened dramatically since 2023 and are now nearly as loosey-goosey as they had been during the reckless monetary policy era in 2021, when the Fed’s policy rates were at near 0% and QE still ruled, despite surging inflation.