Dear all,
How should I understand the underlined?
Thanks in advance.
Eartha
Stock market volatility fell and risk appetite continued to increase, helping spreads narrow on lower-quality corporate bonds and high-yield debt.
Not a teacher only a native.
I would say this is a question for economists to answer.
Although I have not studied economics or any aspect of finance, if I had to guess at what the underlined phrase meant, I would say:
Lower-quality corporate bonds and high-yield debt became more attractive to investers as the spreads narrowed on these due to the falling volatility of the stock market and the continuation of risk appetite.
To fully understand the sentence, you need to understand the economic terms being used.
Spreads narrowed - the stock market doesn't have to move as far to make a profit. If spreads widened, the stock market has to move more before a profit is made.
Risk Appetite - How much risk is an organisation willing to take to achieve the desired returns.
Hopefully an English teacher who is also an economist will reply (I just googled the terms to try and help you - I am in no way an economist).
EDIT: I see someone has posted a clearer answer than me, I hope they explained it better than I have!