Credit spreads are a useful monitoring tool, but a poor timing signal. Investors who tried to position defensively the moment spreads began tightening in 2023 left significant return on the table.

Structural models of default are widely used to analyze corporate bond spreads, but have generally been unable to explain why risk premiums are as high as they are. This credit spread puzzle can be ...

Corporate floating rate notes (FRNs) are often discussed when talking about interest rate risk, but credit conditions also play an important role in shaping returns. While FRN coupons adjust with ...