Summary
Aggregate Credit Spread shows the market-value-weighted spread of covered corporate bonds over comparable government bond yields.
It is displayed in basis points, where 100 basis points equals one percentage point.
Why it matters
The measure provides a broad indication of the additional return investors require for holding corporate credit risk instead of government bonds.
How to read it
A wider aggregate spread may indicate higher perceived credit risk, weaker demand, or greater market uncertainty. A narrower spread may indicate lower perceived risk or stronger demand for corporate bonds.
The result depends on the bonds included and their relative market values.