FYI: In Larry's previous blog, he looked at the size and volatility of the three equity premiums of beta, size and value. Today he turns his attention to the two premiums that help explain the performance of bond portfolios, term and credit.
Unlike the case with the value premium, there’s no debate about these two factors being risk premiums rather than anomalies created by behavioral errors. The data covers the same 91-year period, 1927-2017, that we used in looking at the equity premiums.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-examining-bond-premiums
