Electric utilities are not especially popular with bond investors these days.
Consider the spread-versus-Treasurys on the ICE BofA U.S. Electric Utility Index. The spread is the amount of additional yield the market demands for owning corporate bonds rather than supposedly default-risk-free U.S. Treasurys. On June 2, 2023, the utilities’ spread was 146 basis points. (One basis point equals 1/100 of a percentage point.)
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