Great news for the global economy: Risk-taking is back on.
The crucial piece of evidence can be found in the bond market, by looking at how much more lenders charge to extend credit to corporations than to the U.S. Treasury. America gets to borrow at the so-called risk-free rate. Corporations pay extra.
The higher amount, known as the credit spread, has shrunk dramatically over the past few months. Companies with a BBB-rating, which is moderately risky, have been paying a third less in premium than they did earlier in the year. Read more here.
