Credit and leverage

Korea AA- Credit Spread 3Y

The Korean AA- 3-year corporate bond yield minus the 3-year treasury yield. This spread is the risk premium on high-grade corporate funding and the standard thermometer of stress in Korea's credit market, widening when funding conditions tighten.

Latest

0.68 pp

-0.01 pp

Date2026-09-07
History2014-01-02–2026-09-07
Observations3,124
Bank of Korea ECOS

At a glance

Korea AA- Credit Spread 3Y: latest value and prior change

As of 2026-09-07, Korea AA- Credit Spread 3Y is 0.68 pp. It is 0.01 pp lower than 0.68 pp on 2026-09-04.

Within the default comparison window of 1,000 observations from 2022-08-09 to 2026-09-07, the latest value is at the tie-adjusted 56th percentile. Available history covers 2014-01-02 to 2026-09-07 with 3,124 observations.

Observed on
Default comparison window
2022-08-092026-09-07
Observations · observed cadence
1,000 · Daily

A high or low percentile does not by itself make the indicator positive, negative, or a buy or sell signal.

Time-series chart

Korea AA- Credit Spread 3Y

2014-01-02–2026-09-07

Long-history series are stored as real provider observations. Index, FX, VIX, and ratio charts use historical backfill where providers expose it; Korean investor flow and margin-credit feeds expand as stable historical endpoints become available.

Recent observations and calculated changes

The ten latest chart observations. Change subtracts the previous observation; intervals vary with holidays, release schedules and missing data. A difference in rates or ratios is not an investment return.

Korea AA- Credit Spread 3Y · pp
ObservedValuePrevious dateDifference (current − previous)
2026-09-070.68 pp2026-09-04-0.01 pp
2026-09-040.68 pp2026-09-030.00 pp
2026-09-030.68 pp2026-09-020.01 pp
2026-09-020.67 pp2026-09-01-0.00 pp
2026-09-010.67 pp2026-08-31-0.01 pp
2026-08-310.68 pp2026-08-28-0.01 pp
2026-08-280.69 pp2026-08-27-0.01 pp
2026-08-270.69 pp2026-08-260.01 pp
2026-08-260.68 pp2026-08-25-0.00 pp
2026-08-250.69 pp2026-08-240.00 pp

Source: Bank of Korea ECOS

Interpretation guide

The Korea AA- credit spread: the benchmark thermometer of the credit market

The AA- spread is the AA- 3-year corporate bond yield minus the 3-year treasury yield. AA- is the reference grade of Korea's corporate bond market, so this spread shows how much extra even high-grade issuers pay to borrow — the standard thermometer of Korean credit stress.

What it means

A widening spread means investors demand more risk compensation even from quality names. Because it is the gap against treasuries rather than the yield level itself, it isolates credit-market tension from the monetary-policy cycle.

  • A gently narrowing spread marks a normal, settled credit market.
  • The spread widening despite policy cuts means easing is not reaching the credit market.
  • Abrupt widening over weeks — as in the 2022 Legoland crisis — signaled systemic funding stress.

Interpretation rules

The AA- spread only tells its full story next to the BBB- spread. Risk aversion hits BBB- first and hardest, with AA- reacting later; when even AA- widens, caution has spread to quality paper — a much heavier signal.

  • BBB- widening while AA- holds is selective caution confined to lower grades.
  • AA- and BBB- widening together reads as risk aversion across the whole credit market.
  • A turn toward narrowing flags recovering bond demand and early risk-appetite repair.

How to apply it

This spread often shows funding conditions turning half a beat before equities do. It is most useful as background for sectors that live on borrowed money — real-estate project finance, construction, and brokerages.

  • In widening phases, hold funding-dependent sectors at a conservative weight.
  • The inflection where widening stops and reverses is one input for re-entering risk.
  • Read it with CP rates and bank debenture spreads to see whether stress has reached short-term funding.