The gap between the yields on Triple-C and Single-B corporate bonds has traditionally been a signal associated with bad news for the stock market. Single-B bonds are issued by vulnerable companies, while Triple-C bonds expose their issuers to a substantial risk of default. According to the article, this signal from the corporate bond market has historically preceded major drawdowns for the S&P 500. The post was written by Steven Goldstein, a MarketWatch journalist covering European financial markets as well as global macroeconomics and commodities.
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