Bangkok--8 Aug--Standard & Poor's
Standard & Poor's speculative-grade composite spread reached a new high for the year on Aug. 3. The composite spread widened by 10 basis points (bps) to 580 bps amid the continued market turbulence and declining Treasury yields, said an article published today by Standard & Poor's Global Fixed Income Research, titled "The U.S. Speculative-Grade Composite Credit Spread Hit A New High For 2011."
This year's previous high for the speculative-grade composite spread was 574 bps reached on June 24. In comparison, Standard & Poor's investment-grade composite spread is currently at 170 bps, below the high of 177 bps set in January.
"Much of the expansion we've seen in the speculative-grade spread over the past week is a result of falling yields on the five-year Treasury bonds," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Since July 28, the speculative-grade composite has widened by 44 bps, while the yield on the five-year Treasury has declined by 27 bps."
"Although the speculative-grade spread has reached its highest point for the year, it remains well below its five-year moving average of 674 bps, and it's only moderately higher than its one-year moving average of 552 bps," said Ms. Vazza.
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Media Contact:
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Analyst Contacts:
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