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CCC Minus AAA Credit Spread

The premium the market demands to lend to the weakest borrowers instead of the strongest, in percentage points. If the AI build-out's financing cracks, it cracks here first.

What the Credit Market Charges the Weakest Borrowers

AAA and CCC corporate bond yields, and the gap between them — the last three years.

CCC Minus AAA Credit Spread

Source: FRED BAMLC0A1CAAA and BAMLH0A3HYC — ICE BofA AAA and CCC option-adjusted spreads, daily • Latest: Aug 6, 2026 • The last three years

WEAK CREDITORS PUNISHED
CCC minus AAA spread, percentage points
9.78 0.07 (0.71%) vs prevAug 6, 2026

Read this chart with its limitation in view: it is not a technology-sector measure, and it is not a credit default swap. Single-name CDS quotes are licensed data and cannot be republished here. AAA and CCC are all-sector rating buckets, used as a proxy because that is where the cash-rich hyperscalers and the leveraged datacentre builders respectively borrow. When this gap widens, the market is charging the weakest borrowers more for the money the build-out depends on.

How to Read This Chart

The series is derived, and the derivation is simple: the average yield on CCC-rated corporate bonds minus the average yield on AAA-rated ones, both all-sector rating buckets from the Federal Reserve data named in the source line above, plotted daily over the last three years. Because both sides are yields taken on the same day, the gap strips out the level of interest rates and isolates the risk premium itself.

The gap is quoted in percentage points: how much more a CCC-rated borrower pays than a AAA-rated one for the same money. A flat or narrowing gap means credit is cheap for everyone; a widening one means the market is repricing risk from the bottom up, borrower by borrower.

Two limitations, stated plainly. This is not a technology-sector measure: the buckets cover all sectors, and they work as a proxy only because AAA is roughly where the cash-rich hyperscalers borrow and CCC is roughly where the most leveraged datacentre builders borrow. And it is not a credit default swap — single-name CDS quotes are licensed data and cannot be republished. A credit scare anywhere else in the economy can move this series without anything changing in AI, so read it alongside the builders' own filings, not alone.

That repricing is the transmission channel into US equities. The AI build-out runs on continued access to borrowed money — tracked company by company on the capex-vs-debt page — and a widening spread raises the cost of exactly that money. A widening gap is the financing crack arriving in the data before it arrives in the headlines; a narrowing one is the credit market saying the build-out can keep rolling.

Nothing here is a forecast: the chart shows the premium itself, daily, not a probability of default or a timing. Pair it with the builders' leverage to see both sides — who owes, and what the market charges for owing.

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Spread data sourced as noted above. For educational purposes only. Not investment advice.