During economic upswings, spreads between bonds of different ratings tend to widen.

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During economic upswings, investors tend to become more confident and willing to take on more risk, which can lead to a narrowing of credit spreads as demand for lower-rated bonds increases. Conversely, during economic downturns, credit spreads tend to widen as investors become more risk-averse and demand for higher-rated bonds increases.

During Economic Upswings, Spreads Between Bonds of Different Ratings Tend