Technology company yields are currently higher than most industries, and investment-grade bonds, which typically have low interest rates, are now comparable to junk bonds. The bond market is repricing technology companies—in the past, technology companies had lower credit risk than most industries, but now they are being required to pay a higher financing risk premium.
Note: Credit spread (OAS) simply means how much extra interest must be paid relative to the risk-free rate of the same maturity to compensate investors for the credit risk they bear. A higher OAS value indicates that the market perceives higher credit risk.
