How far have financial markets recovered from the shellacking they took in 2008? One way to answer the question is to say that corporate credit spreads have narrowed from their highs set in December 2008, but not all the way back to their lows of May 2007. Then again, the early 2007 levels reflected froth and euphoria in the credit markets, and should perhaps not be expected to be reached again for some time.
Another way of approaching the question is to look at the shape of median credit spread
The week on Risk.net, July 7-13, 2018Receive this by email