Bangkok--22 Nov--Standard & Poor's Bond spreads have reached levels not seen since 2003 as heavy October issuance and market volatility have pushed spreads wider, according to an article published today by Standard & Poor's. The report, titled "U.S. Credit Comment: Bond Spreads Reach 2003 Levels (Premium)," says after some stabilization in October, speculative-grade spreads have blown out 85 basis points (bps) since the end of last month and currently stand at 514 bps. Investment-grade spreads have followed a similar pattern, widening 20 bps over the past month to 183 bps as of Nov. 19, the highest level since April 2003. General market volatility, over supply, deterioration in credit fundamentals in key sectors, and possibly some profit taking after the early October rally are the key forces behind the price drop. "October saw $90 billion in new issuance, $19 billion of which was high yield," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "While it appeared that the market might absorb it with relative ease, we may have seen a case of a slight over supply. Investors have since pulled back, which has delayed much of the planned issuance in bonds and leveraged loans in November. This appears to be creating some overhang in supply, as the impending issuance weighs on credit spreads. However, light refinancing needs in both investment grade and high yield should help ease issuance pressure in December." The report is available to RatingsDirect subscribers who have upgraded their package to include the Global Fixed Income Research add-on. RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber with the Global Fixed Income Research add-on, please contact your local Standard & Poor's representative or [email protected] for further information. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided. Media Contact: Mimi Barker, New York (1) 212-438-5054, [email protected] Analyst Contact: Diane Vazza, New York (1) 212-438-2760