Figure 5
Aggregate Corporate Credit Spreads and Credit Quality
Median BBB 7-10 Years Credit Spread

Note. Medians are weighted by the market value of bonds outstanding. Merrill Lynch data are
for nonfinancial issues only.
Median Expected Year-Ahead Default Frequency
Percent

Note. Medians are weighted by the book value of liabilities. Moody’s/KMV data are for
nonfinancial firms only.
19
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