Swap spreads of high-grade companies and their junk counterparts has fallen

 


The gap between default swap spreads of high-grade companies and their junk counterparts has fallen more than 100 basis points since September. 

Known as “compression” in market parlance, it points to less fear that a sharp economic downturn will leave the weakest credits vulnerable to default. 

Even so, the measure remains above pre-pandemic levels.

Bloomberg 7 januari 2023 

https://www.bloomberg.com/news/articles/2023-01-07/optimism-makes-comeback-on-wall-street-with-soft-landing-eyed


The Junk Bond Reckoning Is Coming in 2023


Jonathan Levin Bloomberg 27 december 2022







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