Answer:
The slope of the corporate yield curve has become steeper over the past few months; it means increasing risk and an increase in expected inflation.
Explanation:
There is an expected profit provided by any corporation to its investors during the time of investing. Expressing that in a graphical form is known as yield curve.
Yield curve is typically becoming steeper when:
• The time to maturity increases and associated interest rate increases as the time to maturity increases.
• It also means greater risk due to the higher likelihood of inflation in the long term and due to the debt issued for longer term.
