alt Hacker News> has now widened from the initial +175bps to a whopping +231bps doing more than two-thirds of the work.
2.31% spread over treasuries is heading for junk bond status?
Replies
tyre • today at 2:21 PM
No, but the fact that they're the worst-performing BBB bonds, the company is burning cash, and the equity being down 38% since its peak after 1 month of trading is indicative of the market's…suspicions.
We'll see what ratings agencies think of the health of the company.
It's a lot closer to junk (approx 2.7%) than it is to investment grade (approx 0.8%):
https://www.macrotrends.net/3006/high-yield-spread
https://www.macrotrends.net/3042/us-corporate-bond-spread