US junk bond spread widens to more than 300 bps
BY Reuters | CORPORATE | 03/11/25 06:41 AM EDTMarch 11 (Reuters) - The yield spread between junk-rated corporate bonds and U.S. Treasuries opened out late on Monday to its widest level since September, in a sign that overall investor confidence is deteriorating as worries about recession and a global trade war rise.
On the ICE BofA U.S. High Yield Index, a commonly used benchmark for the junk bond market, the option adjusted spread surged to 316 basis points, a level not seen since September 24. These spreads refer to the interest rate premium investors demand to hold low rated corporate debt over safer Treasuries. (Reporting by Alden Bentley; Editing by Andrew Heavens)