Corporate Bonds Spread

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Corporate Spreads

BondsOnline offers Corporate Debt spread data for Industrials, Utilities, Transportation, Banks, and Finance (non-bank).  This valuable information is available daily, or historically back to January 1999 for each of the sectors, and is available for purchase in one of two ways:

> Purchase a single report for $29 per sector, per day, or
> Subscribe and get all of the sectors on a daily basis.
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Reuters Corporate Spreads for Industrials*

Rating 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 30 yr
Aaa/AAA 5 10 15 22 27 30 55
Aa1/AA+ 10 15 20 32 37 40 60
Aa2/AA 15 25 30 37 44 50 65
Aa3/AA- 20 30 35 45 53 55 70
A1/A+ 30 40 45 58 62 65 79
A2/A 40 50 57 65 71 75 90
A3/A- 50 65 79 85 82 88 108
Baa1/BBB+ 60 75 90 97 100 107 127
Baa2/BBB 65 80 88 95 126 149 175
Baa3/BBB- 75 90 105 112 116 121 146
Ba1/BB+ 85 100 115 124 130 133 168
Ba2/BB 290 290 265 240 265 210 235
Ba3/BB- 320 395 420 370 320 290 300
B1/B+ 500 525 600 425 425 375 450
B2/B 525 550 600 500 450 450 725
B3/B- 725 800 775 800 750 775 850
Caa/CCC 1500 1600 1550 1400 1300 1375 1500

* As of June 30, 2004

Methodology Reuters Pricing Service (RPS) has eight experienced evaluators responsible for pricing approximately 20,000 investment grade corporate bonds.  Corporate bonds are segregated into four industry sectors; industrial, financial, transports and utilities.  RPS prices corporate bonds at a spread above an underlying treasury issue.  The evaluators obtain the spreads from brokers and traders at various firms.  A generic spread for each sector is created using input from street contacts and the evaluator’s expertise.  A matrix is then developed based on sector,rating, and maturity.