Merrill Lynch's index of the spread between high yield bonds and comparable Treasuries has just recently moved back below the highs seen during the prior bear market ('00-'02). At 1,041, spreads are down 52.29% from record highs seen last December, making it much easier for companies to do business. Spreads still have a little bit further to drop to get below levels seen just before the Lehman bankruptcy, but the current downtrend should have enough momentum to break through to the downside.
To receive credit spread information on a daily basis, subscribe to Bespoke Premium or Premium Plus today.
Comments