3. The graph below depicts the yield of CCC or lower rated bonds (blue line) and the yield of BBB rated bonds (red line) from 2006 until last week. The spread (difference between CCC and BBB yields) widens significantly during some periods of time and shortens during others. What economic factors do you think explain this spread? FRED-ICE BolAML US High Yield or BelowOption-Adjusted Spread -ICE BofAML US Corporate BBB Option-Adjusted Spread 50 40 30 20 10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Shaded areas indicate U.S. recessions Source: ICE Benchmark Limited (IBA) mytred/g/m7IE Cancel Print