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...

click to enlarge

Comments

[Eric Boughton:]

"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.

2008 Feb 22 11:48 AM

[roanokela:]

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!!

2008 Feb 22 12:42 PM