FAQ

FAQ

• What is Credit Spread Alert?

  Credit Spread Alert is a weighted index of varying corporate bond spreads relative to treasuries. It consists of 4 stages, each with 6 sublevels, and was designed as a directional bias indicator for traders and investors to navigate risk-on and risk-off markets and to take advantage of credit risks.

• Should I look at the level or the direction of Credit Spread Alert?

  While it's important to know what level the index is at, it is more important to follow the direction of the index as a gauge to evaluate equity directional bias and position your portfolio accordingly.

• How should I use Credit Spread Alert?

  Credit Spread Alert should be used as a directional bias indicator of credit stress and equities. It is important to watch the relationship between Credit Spread Alert and equity market moves, and see how existing positions react. In general, when the directional trend is to the left, credit spreads are narrowing, and equities take on a risk-on (bullish) tone. When the directional trend is to the right, credit spreads are widening, and equities take on a risk-off (bearish) tone, where one should consider more cautionary strategies.

• Why is it important to follow credit spreads?

  Equities tend to follow credit. So as a trader or investor, it is important to follow rising and falling stress in the credit markets as a potential leading indicator for equity markets. Credit Spread Alert is a proprietary mix of seven critical credit spread metrics, normalized into an index that should be used as a directional bias indicator of credit stress.

• What does Credit Spread Alert NOT do?

  This credit alert index looks at corporate bond spreads relative to US Treasuries to be used as one of many tools to help improve your existing trading strategies and portfolio performance by gauging risk sentiment. Credit Spread Alert is NOT a real time trading signal. It does NOT forecast market moves. It does NOT predict after-hour events, intraday news, events, government economic reports, or movements of any individual companies or indexes.

• How much does Credit Spread Alert cost?

  Credit Spread Alert is free during beta testing.
  After the official launch, a monthly subscription will cost $9.99 with a 30-day free trial - no credit card required. When the trial expires, you will be sent an email asking if you would like to activate your subscription. Yearly discounts available.

• Can I change Credit Spread Alert’s index weighting?

  Yes. Once the full service launches, an option to upgrade will be available which will allow you to change the index weighting as well as set up notification alerts for intraday movements.