This chart shows the contribution of the corporate bond spread to the CFSI. This spread measures the difference between the 10-Year Moody's Aaa-rated corporate bond yield and 10-Year US Treasury yield, which captures medium- to long-term corporate risk for all sectors. This is a useful stress indicator because when the likelihood of losses increases, firms have trouble financing debt and may be less able to obtain liquidity, which implies greater stress.
Release: Cleveland Financial Stress Index
Federal Reserve Bank of Cleveland, Contributions to the Cleveland Financial Stress Index: Corporate Bond Spread [CBSD678FRBCLE], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/CBSD678FRBCLE, February 8, 2016.