Kaeppel's Corner

Jay Kaeppel

3-17-2023 at 9:30 am

What credit spreads are telling us about the banking crisis

Credit spreads tend to widen sharply during times of stress in the financial system as investors move away from riskier credits into what they perceive to be safer credits. Credit spread "spikes" are a beneficial warning sign for investors. Conversely, when a perceived crisis unfolds, and credit spreads do not widen significantly, it also may provide investors with important information.

Sorry, this content is restricted to SentimenTrader members.

To read this post, please login to your account, sign up for our trading solutions or start a 30-day free trial to Kaeppel's Corner

Login →