Credit spreads (the yield premium corporate bonds pay over Treasury bonds) are currently extremely tight at the 2nd percentile of their 20-year range, indicating market complacency and very strong sentiment, but they have not spiked and liquidity remains good, so this is a warning sign to monitor rather than a current crisis indicator.
factualpending
Speaker
Michael LebowitzEvidence Quote
“it's in the bottom 2%...They're cautionary, but they're also at the same time telling you that sentiment is good and liquidity is great right now.”
Created: 8/12/2026, 6:23:20 PM
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