[Answer] What impact will a tightening of the corporate spread most likely have on a company?

Answer: Corporate impact global impact consumer impact.

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What impact will a tightening of the corporate spread most likely have on a company? Transcribed Image Text. KNOWLEDGE CHECK What impact will a tightening of the corporate spread most likely have on a company ? A tendency to restrict the borrowing capacity of the company A tendency to expand the borrowing capacity of the company A tendency to make borrowing more expensive A tendency to make the company more prone to bankruptcy. Thu Feb 27 2020 · Spread tightening in the corporate bond market since the start of the year has been dramatic with corporate borrowers now paying the lowest premiums over government rates for around six years. Some have drawn the conclusion that on this basis spreads are too tight and corporate bonds are due for a correction. Mon Jul 07 2014 · Lately we've been hearing that credit spreads are tightening . What are they and why do they matter? A spread measures how much more a business pays to borrow money than the government does. At any given time different companies pay different spreads for their debt depending on factors including the maturity of the debt and the health of... Credit Spreads Expected to Tighten for Corporate Bonds in 2011. Gross investment yields on fixed-income instruments — in particular corporate bonds — are a function of two components: current yields on a risk-free benchmark and a spread premium. The primary contributor to the spread premium is the credit spread . In terms of business cycles a slowing economy tends to widen credit spreads as companies are more likely to default and an economy emerging from a recession tends to na...

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