CreditPulse — Coverage. Analysis. Perspective.

The Credit Spread

The credit spread represents the difference in yields between high-risk junk-rated bonds and low-risk U.S. government bonds.  When credit markets are liquid the spread narrows, when credit markets are tight the spread widens.  The credit spread is a key indicator of the integrity of credit markets.  CP tracks the credit spread bi-monthly using data published in the Wall Street Journal.  As of Aug. 8th, the credit spread stands at 3.99%. 

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