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US corporate credit spreads eased after last week’s broad widening
The CCC-and-lower ICE BofA spread rose to 12.15% before easing to 12.02% on October 2, with investment grade also off from its October 1 level.
US corporate credit spreads widened from September 25 to October 1, extending pressure signals beyond the weakest borrowers, as investors demanded more compensation for holding corporate debt, according to CryptoSlate.
Option-adjusted spreads showed the biggest move in CCC-and-lower debt, with the ICE BofA CCC spread climbing from 11.28% to 12.15%, while the broad high-yield spread rose from 2.93% to 3.24% and the investment-grade corporate spread increased from 0.81% to 0.86%.
CryptoSlate said that the October 5 FRED updates added October 2 readings, showing CCC-and-lower eased to 12.02% from October 1, broad high yield fell to 3.10%, and investment grade declined to 0.85%, though all three remained above their September 25 levels.