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CCC corporate bond spreads top 1,000 basis points for first time

LiveMint reports CCC rated debt traded at a 1,007 basis point spread over Treasuries on Wednesday, up from 860 basis points at the start of September.

Reported · Written up by our desk · Government Bonds

LiveMint Markets, citing Bloomberg, said the spread on the riskiest US corporate bonds rose above 1,000 basis points over Treasuries for the first time since the 2023 regional banking crisis. The outlet said CCC rated debt traded at a spread of 1,007 basis points on Wednesday.

The story added that the CCC spread was 860 basis points at the start of September and that the reading marked the widest level since March 2023, when investors sold risky credit during the Silicon Valley Bank and Credit Suisse turmoil.

LiveMint Markets also attributed the move to how risk premia react to rates, citing Charles Schwab Corp fixed income research and strategy head Collin Martin. The outlet said the “key driver” is that the economy is not weakening sharply, but Triple C issuers remain highly sensitive to changing interest rates, and rising global yields pressure leveraged borrowers by increasing debt service costs.

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