Although the Fed has more or less normalised the short-term rate structure in the US, short rates in Japan and, to a lesser extent, mainland Europe remain unusually low. Long-term rates remain on the low side as well.
Appetite for risk has been a little more variable this year, but overall risk spreads remain pretty low, especially considering some of the events which have occurred over recent years. Of particular note recently has been the marked increase in leveraged buy-out activity around the world.