by Wolf Richter
My “Credit-Card Spread Index” blows out. Heck if I knew what that means, but it doesn’t mean anything good.
The average yield of investment-grade bonds (as per ICE BofAML US Corporate Yield index) dropped to a record low of 2.62% this week. This comes after the Fed cut its policy rates three times last year, from already low levels, to even lower levels, and after it bailed out the repo-market with over $400 billion over a period of just three months. Bond yields across the board have fallen, and it made borrowing for companies extremely cheap: