Bangkok--15 Aug--Standard & Poor's
Standard & Poor's U.S. investment-grade composite credit spread contracted to 268 basis points (bps), 10 bps tighter than the previous day. By comparison, this is more than 77% wider than the five-year moving average and 31% wider than at the beginning of the year. With continued pressure on financial institutions and banks, investment-grade credit spreads are expected to remain range-bound at present high levels.
Standard & Poor's U.S. speculative-grade composite credit spread similarly contracted to 768 bps, 6 bps tighter than the previous day. By comparison, this is 33% wider than the start of the year and 80% wider than the five-year moving average. The speculative-grade credit spread is poised for continued volatility, commensurate with an escalation in speculative-grade defaults over the course of this year.
Media Contact:
Mimi Barker, New York (1) 212-438-5054
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Analyst Contact:
Diane Vazza, New York (1) 212-438-2760