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. CreditPulse tracks the credit spread bi-monthly using data published in the Wall Street Journal. As of Feb. 10th, the credit spread stood at 4.138%.
