Spreads on US CCC-rated corporate bonds over Treasurers exceeded 1,000 bps, up
from about 860 bps in early September and the widest since the 2023 regional
bank crisis when investors sold high-risk credit. Such risk premia typically
indicate elevated odds of default, restructuring or losses. Collin Martin, head
of fixed-income research and strategy at Charles Schwab Wealth Management, said
the main driver is an economy that is performing adequately but not robustly;
CCC issuers are the riskiest and most sensitive to interest-rate moves.
