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Qaagi - Book of Why

Causes

Effects

any of various factors including maturity difference , risk difference , or taxability difference(passive) may be caused byYield spread

the Fed 's tightening(passive) caused byyield spreads

the level of interest rates in the market(passive) are influenced byYield spreads

cyclical variationsmight influenceyield spreads

The abilityto createyield spreads

at 16.20 pct(passive) was setThe yield spread

the risk of default in the context of a reduced form model(passive) caused byyield spreads

the Feds tightening(passive) caused byyield spreads

The liquidity of the various government bondswill most likely influencethe yield spread

These two factorspreventyield spreads

ratings ... the marketsetyield spreads

Other than this , market speculation regarding the debt buyback program of the Department of the Treasury is consideredto influencethe yield spread

the lower rate the investors were willing to accept because they perceived the investment as being little or no risk(passive) caused bythe yield spread

overreaction ( arbitrage opportunity(passive) caused bya yield spread

Real GDP Growth SourceTypically LeadReal GDP Growth Source

significant corrections in the stock marketsometimes leadsignificant corrections in the stock market

against government bonds , investment grade bonds andare setagainst government bonds , investment grade bonds and

to runsleadingto runs

a reasonable buffer for longer - term bondscreatea reasonable buffer for longer - term bonds

the exchange ratehas been leadingthe exchange rate

nervousness in the marketstriggeringnervousness in the markets

from researchoriginatedfrom research

a divergence as it has made a higher high ... while the EUR / USD has n’t created a corresponding higher high yethas createda divergence as it has made a higher high ... while the EUR / USD has n’t created a corresponding higher high yet

from the chance of defaultresultingfrom the chance of default

alsocontributedalso

Aug 2013 |to contributeAug 2013 |

to global private real estate ’s competitive returnscontributedto global private real estate ’s competitive returns

of real interest rate and expected inflationis composedof real interest rate and expected inflation

domestic demand growthleadsdomestic demand growth

positively to the “ LEIcontributedpositively to the “ LEI

perverse incentives ... driving irresponsible , dangerous activity in the mortgage markethave createdperverse incentives ... driving irresponsible , dangerous activity in the mortgage market

stockshas been leadingstocks

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Smart Reasoning:

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