US credit spreads widened from September 25 to October 1, with the largest increase in the weakest-rated debt (CCC-and-lower). The ICE BofA CCC credit spread rose 87 basis points from 11.28% to 12.15%, while the broad high-yield spread increased 31 basis points and investment-grade spreads advanced only 5 basis points. All three spreads eased on October 2 while remaining above their September 25 levels. The investment-grade move is the clearest evidence that repricing extended beyond the lowest-rated debt. The potential impact on Bitcoin depends on how credit repricing changes capital costs, institutional risk-taking and demand.
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