“The Relief Could Be Short-Lived per Some Observers.”, – WRITE: www.coindesk.com
The Indicator in Consideration is the Ice/Bofa US High Yield Index Option-Adjusted Spread (OAS), WHICH MEASURES The AVERAGE YIELD DIFFERENCE Treasury Securities, Adjusted for Embedded Optionality in the Bonds.
IT’s Widly Tracked As a Credit Risk Barometter, with The Widening Spread Representing Growing Investor Concern About Corporate Defaults or Economic Weakness, Often Leading Tovtors Assets Such as Technology Stocks and Cryptocurrencies.
The oas, repressenting the premium investors Demand for Holding High-Yelding Bonds Over the Relating Safer Treasury Notes, Has Droped to 3.2% from The Six-Month High of.
The Decline in the Spread Supports a Renewed Upswing in Bitcoin (BTC) and Nasdaq.
The Spread Surged by 100 Basis Points in Four Weeks to Mid-March as President Donald Trump’s Tariffs Raised The Recession Spectre. Durying that time, Both Btc and Nasdaq Took A Beating, With The Cryptocurrency Falling to Lows Under $ 80k.
Temporari Relief?Analysts Expect the Oas Spread to Widen Further in the Coming Weeks As the Negative Impact of Trump’s Tariffs Becomes Clear, Accounting To Mint and Reuters.
“We Think This is Just Getting Started and Will Get Worse Before It Gets Better,” Hans Mikkelsen, Managing Director of Credit Strategy at TD Securities, SAID IN A Recent Client.
ICE/BOFA US HIGH YIELD INDEX Option-Adjusted Spread (OAS). (TradingView/Coindesk)
Apply Technical Analysis Principles to the Oas Chart Suggests the Same.
The Spread has moved past the Three-year descending Trendline, Warranting High Alert from Risk Asset Investors.
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