Reported 15 days ago
S&P Global Ratings report suggests that low credit spreads may mask high borrowing costs and compromised debt sustainability, indicating a possible credit bubble in the US. Investment-grade spreads remain at near-record lows, while high-yield spreads have fluctuated, raising concerns amid rising interest rates and economic uncertainty. Despite this, corporate earnings and overall economic growth provide some assurance, with more credit upgrades than downgrades since 2022, though potential risks remain from upcoming tariff plans.
Source: YAHOO