When a company's corporate spread tightens, what does that mean?

A credit spread is the difference in yield between two bonds.Widening credit spreads show concern about the ability of corporate borrowers to service their debt.Improving private creditworthiness is indicated by narrowing credit spreads.

When bond spreads widen, what happens?The yield difference between the two bonds is increasing, and one sector is performing better than the other, if the direction of the spread increases.The yield difference is decreasing when the spreads are narrow.

A credit spread is the difference in yield between two debt securities.A 10-year Treasury note with a yield of 5% is said to have a credit spread of 200 basis points.

Credit spreads widen when the U.S. Treasury market is favored over corporate bonds.The difference in yield between U.S. Treasury bonds and other debt securities is known as the spread.

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