U.S. High Yield Credit Spreads vs. VIX Low high-yield credit spreads and a low VIX may suggest market positivity, but the lack of fear or volatility can paradoxically create a sense of complacency among investors, causing them to overlook potential risks. Image: Topdown Charts
Weekly High Yield Fund Flows The $1.77 billion inflows into U.S. high yield ETFs over the past week indicate investor optimism and a willingness to take on greater risk for the possibility of greater returns. Image: BofA Global Research
S&P 500 and U.S. High Yield OAS The new low in the U.S. high yield option-adjusted spread is seen as a promising signal, supporting the expectation of a summer rally on the S&P 500 in 2024. Image: BofA Global Research
High Yield Bond Flows Investors have chased higher returns by taking on more risk with high yield bonds, a strategy that can yield lucrative rewards but also exposes them to heightened vulnerability should market conditions deteriorate. Image: BofA Global Investment Strategy
Global High Yield Bond Prices High-yield bonds are often called the “canary in the coal mine”, as they are seen as a leading indicator of the health of the economy. Image: BofA Global Investment Strategy
FMS Investors – Net % Think High Grade Will Outpferform High Yield Bonds Will high yield bonds outperform IG bonds over the next 12 months? Image: BofA Global Fund Manager Survey
U.S. High Yield vs. Investment Grade Returns and Conference Board U.S. Leading Index Historically, the outperformance of high yield bonds relative to investment grade bonds has followed the Conference Board U.S. Leading Index. Image: Morgan Stanley Wealth Management
USD High Yield Gross Issuance Rising interest rates do not bode well for high yield issuance. Image: Goldman Sachs Global Investment Research
U.S. Yield Curve 2s10s vs. Emerging Market High Yield Junk Bond Price Is a recession looming and are peak yields imminent? Image: BofA Global Investment Strategy
S&P 500 Index Operating Margin and U.S. Corporate High Yield Index High yield bonds may suggest a decline in corporate operating margins. Image: Morgan Stanley Wealth Management