Save MM US Credit Spread
MM CCC credit spread = Merrill Lynch CCC-grade high-yield bond yield - US 10-year bond yield (risk-free interest rate)
Credit spread reflects corporates' default risks.
High-yield bonds are bonds sold by companies with low credit ratings that incur high credit risks and yields more than investment-grade bonds.
When a company is in good shape, cash flow increases and the risks of bankruptcy are low. Bond yield is consequently low.
The credit risk spread has a negative correlation with the stock market. When spread widens, stock price is likely to decline.
MM US CCC Credit Spread2022-08-0510.43 %
MM US BBB Credit Spread0.00 %
MM US AAA Credit Spread0.00 %