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The Hidden Message in Credit Spreads

  • Article
  • Mar 6, 2023
  • #Economics #Finance #Credit
John Authers
@johnauthers
(Author)
www.bloomberg.com
Read on www.bloomberg.com
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The credit market is trying to tell us something. But what, exactly? Look at it almost any way, and credit is available at rates that imply no particular risk of default, and very l... Show More

The credit market is trying to tell us something. But what, exactly? Look at it almost any way, and credit is available at rates that imply no particular risk of default, and very little risk of recession. In both the euro zone and the US, high-yield bonds are looking misnamed.

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Matthew C. Klein @m_c_klein ยท Mar 6, 2023
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Excellent analysis from @johnauthers on the cross-country dynamics linking credit spreads, inflation, and household balance sheets:
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