How I Use Junk Bond Rates As S&P 500 Depth Indicator

S&P 500 market depth is assessed using junk bond (BAA) vs. Treasury spreads as a risk appetite gauge. BAA–Treasury credit spreads are near 10-year lows, signaling expanded risk appetite, though they are not yet at historically alarming levels.

Analysis

S&P 500 market depth is assessed using junk bond (BAA) vs. Treasury spreads as a risk appetite gauge. BAA–Treasury credit spreads are near 10-year lows, signaling expanded risk appetite, though they are not yet at historically alarming levels.