---
title: "BREAKING: The difference between the S&P 500’s earnings yield and BBB-rated corporate bond yield has dropped to -1.9%, the lowest in 15 years."
description: "Excluding a brief period in 2009, this is the lowest level in 23 years.\nThe gap has fallen by 4 percentage points over the last 5 years as US interest rates have risen sharply.\nIn other words, less risky investment-grade corporate bonds now pay a higher yield than S&P 500 companies' profits relative to their stock prices.\nThis metric suggests the market may be overvalued.\nCan this gap continue to widen?\n\nSource: Bloomberg, The Kobeissi Letter"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [BREAKING: The difference between the S&P 500’s earnings yield and BBB-rated corporate bond yield has dropped to -1.9%, the lowest in 15 years.](https://blog.syzgroup.com/syz-the-moment/breaking-the-difference-between-the-sp-500s-earnings-yield-and-bbb-rated-corporate-bond-yield-has-dropped-to-1.9-the-lowest-in-15-years)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jan 13, 2025, 9:10:52 AM

[View full post](https://blog.syzgroup.com/syz-the-moment/breaking-the-difference-between-the-sp-500s-earnings-yield-and-bbb-rated-corporate-bond-yield-has-dropped-to-1.9-the-lowest-in-15-years)

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