High-yield spreads are used by investors and market analysts to evaluate the overall credit markets. The change in the perceivedcredit riskof a company results incredit spread risk. For example, if lower oil prices in the economy negatively affect a wide range of companies, the high-yield spre...
How Yield Spread Works Yield spreads are not fixed, of course. Because bond yields are always in motion, so too are spreads. The direction of the yield spread can increase, or “widen,” which means that the yield difference between two bonds or sectors is increasing. When spreads narrow,...
High-Yield BondsHigh-yield bonds, often referred to as junk bonds, are bonds issued by corporations or entities with lower credit ratings. These bonds are considered higher risk due to the increased likelihood of default compared to investment-grade bonds. As a result, issuers offer higher ...
Indicative Spreads Academic studies of the relationship between an inverted yield curve and recessions have tended to look at the spread between the yields on the10-year U.S. Treasury bond and the three-month Treasury bill. On the other hand, market participants have more often focused on the...
Advertisement. The purpose of a calendar spread is to profit from the passage of time. By reading this article, investors will gain a basic understanding of the different types of calendar spreads so that they are able to use those spreads in their own investing playbook. ...
Albano, Christine
High-Yield Bond Spreads Hit a Nearly Three-Year Low Source: Bloomberg, calculations by Horizon Investments, data as of Oct. 7, 2024. Here’s why that matters: When high-yield bond investors demand yields that are only slightly higher than the yield on comparable Treasuries, investors may see...
Ukraine’s 10Y bonds (US$) are EM High Yield/US Sovereign Bond now trading at only 7.3%. It seems that the time might be right for even NK or Spreads (%) – down to ~300bps Syria to issue bonds. Considering that the US 10Y are ~2.2% and 30Y at ~2.8%, 7.50 spreads are now...
how this 25-year-old makes $500k a year with his newsletter business dollar-cost averaging spreads out the risk i agree with that approach, and it's one i've used in my advisory businesses. most of the time, my clients are comfortable with the concept, but it's not unusual to find ...
Both the option-adjusted (OAS) and the zero-volatility spread (Z-spread) are useful to calculate the value of a security. In general, a spread represents the difference between the two measurements. The OAS and Z-spread help investors compare the yield of tw...