It's funny how certain techniques come into vogue, and this one is everywhere, from the Ford logo to the Land Rover logo to Philadelphia Brand Cream Cheese. It adds a glassy highlight and shadow the easy way.
Quick Tip: Kerning shortcuts
Increasing or decreasing the space between two letters is called “kerning,” and Photoshop lets you kern your type either numerically or by using a keyboard shortcut (which is much better because kerning should be done by eye). To visually kern tighter (remove space between two letters), click your cursor between the two letters that you want to kern (just click, don't highlight), then press Option-Left Arrow (PC: Alt-Left Arrow) to tighten. Press Option-Right Arrow (PC: Alt-Right Arrow) to ...