Thursday, July 9, 2009

Financials still riskier than the rest of the credit market

Bonds of financial firms still trade wider on average than industrial firms or the overall market. In spite of the unprecedented rally, financials' credit is pricing in more risk.

This chart from Barclays Capital shows the (option adjusted) credit spread for financials, industrials, as well as the rest of the investment grade universe:

Related Posts Plugin for WordPress, Blogger...
Bookmark this post:
Share on StockTwits