Compare
| Rating Tier | Spread Range | Default Rate | Examples |
|---|---|---|---|
| AAA-AA (highest quality) | 0.3-0.8% | <0.1%/year | Microsoft, Johnson & Johnson |
| A-BBB (investment grade) | 0.8-2.5% | 0.1-0.5%/year | Most large corporates |
| BB-B (high yield/junk) | 2.5-6% | 1-5%/year | Smaller companies, leveraged firms |
| CCC and below (distressed) | 8%+ | 15%+/year | Companies facing financial stress |
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Explore the **Credit** view to see bond data organized by rating. Compare spreads across quality tiers.
Key insight
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A BBB-rated corporate bond trades at 180bp spread over treasuries. Historical average spread: 140bp. Disciplined read?
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An A-rated corporate bond yields 5.4%, and the comparable Treasury yields 4.2%. The bond has an estimated 0.5% annual default probability and 50% recovery rate. Is the spread adequate compensation for credit risk?
Why: