Financial Glossary
Credit Spread
Difference between interest on safe bonds and risky bonds. If it rises = markets are fearful.
Explanation
High Yield spread over Treasuries. Spread > 5% signals stress; < 3% = confidence in corporate credit.
Technical detail
Tracked via ICE BofA HY Option-Adjusted Spread. Key model feature: elevated spread predicts bear regimes.
See also
Educational content. Not investment advice. Past results do not guarantee future returns.