Corporate Bond Spreads Nearly at All-Time Highs

As a sign that the issues in the US credit markets still have a ways to go before being resolved, yesterday, the spread between US corporate bonds and comparable Treasuries reached its highest levels since October 2002 (240 bps).

While spreads still have a ways to go before matching their all-time highs in the Fall of 2002, at the rate they have been increasing since last Summer, it may not take long...

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This article has 2 comments:

• Eric
  Boughton

  Feb 22 11:48 AM

  My Website
  "All-time highs"?! Applying the moniker "all-time" to data going back only ten years is akin to declaring yourself the "world champion" after winning your school's spelling bee. Let's be accurate here: corporate bond spreads have been quite a bit higher during periods prior to the past decade.
• roanokela

  Feb 22 12:42 PM
  Yes - only 10 yrs of data and no reference to what is being compared - maturitym quality? Sounds great and tells us little of real value. Be more specific!!

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