0

I was wondering about this earlier and I'm stumped.

closed as off-topic by Chris W. Rea, Rupert Morrish, Dheer, JoeTaxpayer Jul 12 at 2:06

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Questions on economics are off-topic unless they relate directly to personal finance." – JoeTaxpayer
If this question can be reworded to fit the rules in the help center, please edit the question.

  • Corporate bond spreads are a measure of liquidity, risk, and the general economic/market condition. Change in the spread isn't completely linear so at times, there are periods of fluctuation in a wider long term cycle. That might account for your observation. My understanding of them is limited and therefore, I couldn't drill down in a micro economic sense and explain why it's happening now or at any other point in time. – Bob Baerker Jul 9 at 21:26
1

If interest rates are falling overall, this increases the general valuation of the stock and bond markets. If there is also some concern about economic weakness, and/or strong demand for Treasurys, this could increase corporate bond spreads because corporate yields may fall but not as much as Treasury yields.

Not the answer you're looking for? Browse other questions tagged or ask your own question.