Corporate Credit Spreads Back Off Tights; Yield Curve Flattens to Precrisis Levels
After a short hiatus, mergers and acquisitions are ramping back up.
With corporate credit spreads remaining near their tightest levels in years and new issue supply running high as issuers rush to complete financing transactions before the holiday season, corporate credit spreads weakened slightly last week. The average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) widened 1 basis point to +99. In the high-yield market, the BofA Merrill Lynch High Yield Master Index widened 8 basis points to end the week at +352.