Tuesday, March 24, 2009

A Chart Worth 1000 Words? Corporate Bond Spreads (Now vs. Then)

Update: I received some feedback questioning where on the corporate curve I was pulling my data, so I've provided the detail for the original (five year maturity) and update (full corporate and high yield indices).

The spread of a AAA rated corporate bond today = the spread of a single B corporate bond less than two years back.

Original: Spread to Treasuries (5-Year Maturity)


Update: Spread to Treasuries (Full Indices)


Source: Barclays