The spread between the riskiest U.S. corporate bonds and U.S. Treasuries has widened to more than 1,000 basis points, up from 860 basis points in early September, according to a ChainCatcher newsflash. The move marks the first time that level has been reached since the 2023 regional banking crisis.
Collin Martin, director of fixed income research and strategy at Charles Schwab, said the main driver is an economy that has held up reasonably well but has not been especially strong. He added that CCC-rated issuers are the most sensitive to changes in interest rates. The report did not provide additional market data beyond the spread levels and Martin’s comments.
The spread between the riskiest U.S. corporate bonds and U.S. Treasuries has risen above 1,000 basis points, higher than the 860 basis points seen in early September, according to ChainCatcher. It is the first time this level has been reached since the 2023 regional banking crisis.
Collin Martin, director of fixed income research and strategy at Charles Schwab, said the main driver is that the economy has performed fairly well, but not been especially strong. He said CCC-rated issuers are the most sensitive to changes in interest rates.
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