Eddy Elfenbein: Lowest Spreads in Six Years

by Eddy Elfenbein, Crossing Wall Street

In a recent CWS Market Review, I discussed the market’s growing appetite for risk. We can see this effect by looking at the narrowing yield spread between risky bonds and secure bonds. Before, I looked at CCC bonds, but here’s the spread between BB bonds and Treasury bonds. Double B bonds are among the lowest-rated investment grade bonds.

It recently dipped below 2.6% which it hasn’t done since July 2007.

Copyright © Eddy Elfenbein, Crossing Wall Street