• 743 days Will The ECB Continue To Hike Rates?
  • 744 days Forbes: Aramco Remains Largest Company In The Middle East
  • 745 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,145 days Could Crypto Overtake Traditional Investment?
  • 1,150 days Americans Still Quitting Jobs At Record Pace
  • 1,152 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,155 days Is The Dollar Too Strong?
  • 1,155 days Big Tech Disappoints Investors on Earnings Calls
  • 1,156 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,158 days China Is Quietly Trying To Distance Itself From Russia
  • 1,158 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,162 days Crypto Investors Won Big In 2021
  • 1,162 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,163 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,165 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,166 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,169 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,170 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,170 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,172 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Corporate Bond Spreads Match 2007 Market Highs

Corporate bond spreads or the difference between investment grade (Aaa rated) and high yield (Bbb rated) are currently 80 basis points. They last reached these low levels in October 2007 at 79 basis points.

When this spread comes down to such low levels it signals an overbought corporate bond market as high yield debt no longer lives up to its name. Similar to the "dash for trash" in equity tops.

Bbb rated corporate debt yields peaked in October 2008 at 9.49% and now yield 5.83% (a 38.6% drop in yield). The following chart shows the inverse relationship between Aaa / Bbb spreads and the SPX.

Corporate bond spreads
Larger Image

 

Back to homepage

Leave a comment

Leave a comment