Investment-grade bond spreads remain near historic lows, Chung Wu Investment Group says
TLT•Investment-grade corporate bond spreads remained near historically tight levels, with A-rated spreads widening about 7 basis points over three months versus 77 basis points for ten-year high-yield spreads. High Treasury yields put all-in corporate bond yields among the most attractive levels of the past two decades.
1. Spread and default figures
Investment-grade spreads stayed within an approximately 20-basis-point range over the past year. Average five-year non-default rates during 2015–2024 were 99.99% for investment-grade municipal bonds and 99.44% for investment-grade corporate bonds.
