At Least Credit Spreads Were Stable

Today's activity in the stock market can only be described as disappointing for investors who were hoping the market would build on yesterday's positive performance.  However, high yield corporate spreads(difference between the yield on junk bonds vs the yield on Treasuries), which have been a big drag on the market lately, showed a small tightening today.

We realize that five basis points is not particularly noteworthy, but in order for the stock market to show any signs of bottoming, activity in the credit markets will first have to show some signs of stabilization.

Comments

[Equity Private]

Question:

Where are you pulling your data from? What instruments/indexes are you measuring spreads from?

Thanks!

-ep