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Junk-bond spreads near 2007-09 lows as bond market stays calm

Junk-bond spreads are trading near the low levels seen before the 2007 to 2009 financial crisis, highlighting how much stress the bond market is currently not pricing in.

Reported · Written up by our desk · Government Bonds

MarketWatch reports that the bond market is unusually calm, with junk-bond spreads near the lows reached before the 2007 to 2009 financial crisis.

According to MarketWatch, the spread levels echo a prior period before the crisis and serve as a warning that risks may be building if market stress returns suddenly.

The outlet also discusses hedging considerations as investors weigh whether the current calm could prove temporary.

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