Summary:
High risk CCC corporate bond spreads continue to decline in the US, reflecting higher investor risk appetite and positive sentiment around the US Company Reporting season. At the end of last week (25/7), CCC bond spreads settled just below 8% after reaching a cyclical peak in April 2025 of 10.5%. Higher grade spreads also compressed with AAA spreads settling at 0.46% at the end of last week, reflecting very little margin. The BBB spreads settled at 0.87% over the risk-free rate after peaking in April 2025 at 1.42%.
Figure 1: US Corporate Bond Spreads
