Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 17. Average spread of rates on subordinated debt at selected bank holding companies, 2002-06. Data plotted as a curve. The spread starts in 2002 at about 110 basis points, moves down slightly for a few months, then rises to reach a peak of about 150 basis points in late 2002. It falls on balance to reach about 60 basis points in early 2004, then oscillates in a narrow band to end at about 60 basis points in early 2006.

Note: The data are monthly and extend through March 2006. Spreads are over comparable-maturity Treasury securities.

Source: Merrill Lynch bond data.  Return to article