Treasuries Tripped

Short-term bonds issued by Exxon-Mobile and Johnson & Johnson currently yield a hair less than comparable Treasuries. While historically a very rare phenomenon, this trend may persist and even expand because some corporations have higher credit ratings than Uncle Sam (due to robust balance sheets). In addition, there’s a severe shortage of top-rated corporate debt, fear over the “fiscal cliff” and the prospect of trillion dollar budget deficits for years.