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tahirg0010
Aug 22, 2021 5:07 PM

Credit Spreads 

BAMLH0A3HYCEY/US10YFRED

Description

When economy faces drag lending and borrowing of USD tightens. Investors expect higher yield for taking more risk causing the spread to widen, and liquidity to increase this also shows expectations of future default risk. High yield spreads- option adjusted have bottomed and are now starting to slowly trend upwards. This is showing the market is not really worried about credit risk. This is something to watch moving forward, and might play out for a nice set up.
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