Investors are more confident in bonds from industrial companies than bank firms, according to data analysis released on Monday.

The market for bonds is indicating investors believe there is higher risk associated with bank bonds than that of industrial counterparts, Merrill Lynch data reveals, according to Reuters.

The yield spread between bonds from both types of companies has increased significantly, with the aggregate of industrial yield spreads over treasuries at 444 basis points as of last Thursday, down from 600 basis points in December.

Financial firm yield spreads over treasuries were 804 basis points, higher than last December, the data shows.

Widening spreads indicate a higher risk premium associated with a financial product while narrowing spreads show lower risk association.

Merrill Lynch