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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (200173)	8/2/2024 9:24:05 PM
From: GROUND ZERO™	Respond to of 218860

Yes, and thank you for being a great competitor!!! GZ

To: re3 who wrote (200173)	8/3/2024 4:44:28 AM
From: GROUND ZERO™	Read Replies (2) \| Respond to of 218860

With this graph below we can see the change in credit spread over time... Savvy investors know that credit spreads may be one of the best indicators of the broader economy's health... The difference between the yields of two bonds with the same maturity but different credit quality is known as the credit spread... A narrow yield spread, close to 1%, suggests that investors are confident in the economic outlook and believe that the risk of corporate defaults is low, this is often seen during strong economic conditions where investors are willing to accept lower premiums for holding corporate debt... Meanwhile, a widening yield spread indicates increased concern about the economy as investors become more risk-averse, they demand higher yields on corporate bonds to compensate for the perceived higher risks of default... The worse the economy, the more corporations are likely to default on their borrowing... Where are we now??? Here's the credit spread between the 7 to 10 year Treasury Bonds vs. the High Yield Corporate Bonds... GZ