Wide credit spreads:

Name: Wide credit spreads:
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

Wide credit spreads indicate that investors are concerned about the risks posed by bonds. When credit spreads widen, it means that the yield on riskier bonds is increasing relative to safer bonds, indicating that investors are demanding higher returns to compensate for the higher risk. This typically occurs during times of economic stress or uncertainty, when investors are more cautious about taking on risk.

Wide Credit Spreads