Treasury Bonds vs Corporate Bonds
Rédaction Financial World News · Explication pédagogique · Comment nous sourçons les rendements
Corporates pay a credit spread over Treasuries. That extra yield is compensation for default and liquidity risk.
Le briefing complet de ce guide est en anglais. Le titre, le résumé et la navigation sont dans votre langue pour que vous puissiez décider de poursuivre la lecture.
Treasury Bonds vs Corporate Bonds — the mechanics
A AA industrial bond is not a Treasury. In a risk-off month the spread can widen and the corporate can fall even if Treasuries rally. Treasuries remain the dollar hedge of first resort.
A Treasury has US government credit. A corporate has issuer credit, call risk, and a spread. That spread is extra yield for extra default and liquidity risk.
In a panic, Treasuries often rally (flight to quality) while corporates cheapen. In a boom, corporates can outperform on spread compression.
Duration can be similar. Credit is not. Do not use a BBB 10-year as a ‘Treasury substitute’ because the coupon looks higher.
Official sources (US Treasuries)
Primary statistics and prospectuses for US Treasuries are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Points essentiels
- A Treasury has US government credit.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Why would I ever buy a corporate instead of a Treasury?
- For extra yield, if you accept default and spread risk. Match that choice to your need for certainty.