Economy
US Triple-C Corporate Bond Spreads Top 1,000 Basis Points
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THE BRIEF
1
The spread on riskiest US corporate bonds surpassed 1,000 basis points over Treasuries for the first time since the 2023 regional banking crisis, implying a high probability of default.
2
CCC-rated debt traded at a spread of 1,007 basis points on Wednesday, up from 860 basis points at the start of September, as global yields pressure levered borrowers.
3
More than half of the worst-performing CCC bonds belong to the technology, media, and telecommunications sectors, with cable and satellite companies acting as the biggest laggards.