Corporate Credit Bubble
Corporate bond spreads are now at their tightest levels in 20 years. Investment grade spreads are currently 83 basis points (the narrowest since March 2005) while high yield bond spreads are 280 basis points (the narrowest since mid-2007 - shortly before the market collapsed).
Spreads measure the extra compensation over “riskless” Treasuries demanded by …
Keep reading with a 7-day free trial
Subscribe to The Credit Strategist to keep reading this post and get 7 days of free access to the full post archives.