US CCC-Rated Corporate Bond Spreads Exceed 1,000 Basis Points

The spread between the riskiest US corporate bonds and US Treasuries has widened beyond 1,000 basis points, marking the highest level since the regional banking crisis in 2023. Collin Martin, director of fixed income research and strategy at Charles Schwab, noted that while the economy is performing adequately, CCC-rated issuers remain highly sensitive to interest rate fluctuations.