Spread on Japan Bonds May Indicate Stocks Will Drop Further, JPMorgan Says

(Bloomberg) -- A widening spread between the interest
Japanese corporate and government bonds pay may indicate that the
stock market may have more room to fall, according to JPMorgan
Chase & Co.

Corporate borrowing costs are measured against the so-called
risk-free yields of government debt. The larger the difference is
between yields, or spread, the higher the perceived risk is of
the borrower defaulting.


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