From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Not all stressors are debilitating.
In some cases, stress can push us to perform at our highest level. But, of course, there are instances when opposing forces become overwhelming, making it near impossible to reach our goals.
We’ve all been there.
And the markets are no different.
While we keep tabs on our heart rate or blood pressure to gauge our stress levels, we focus on credit spreads to measure stress in the market.
Given that rates continue to rise worldwide, it’s an appropriate time to evaluate these spreads and the potential obstacles that may lay ahead for risk assets.
We recently broke down credit spreads in anticipation of them widening and outlined some charts that are driving this trend.
Read our January 27 post for more information about the ins and outs of credit spreads and how we analyze them.
Since these spreads provide valuable information on the health of the overall market, we’re going to check back in and discuss another chart that is on our radar.
Let’s dive in! [Read more…]