During a recession the yield spread between Aa-rated and Ba-rated bonds would tend to:

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During a recession, investors tend to become more risk-averse, leading to a higher demand for safer, higher-rated bonds (like Aa-rated) compared to riskier, lower-rated bonds (like Ba-rated). This increased demand for safer bonds drives their yields down relative to the yields on riskier bonds, which have to offer higher yields to attract investors. As a result, the yield spread between Aa-rated and Ba-rated bonds tends to rise.

During a Recession the Yield Spread Between Aa-Rated and Ba-Rated