Keyword: high yield

High-Yield Credit Returns A good year for high-yield credit returns, but Moody’s has warned that high-yield bonds appear to be expensive relative to fundamentals. Image: Financial Times

High Yield CCC-Rated Bonds Consumer-related and technology industries now represent more than one-third of CCC issues. Image: Arbor Research & Trading LLC

S&P 500 Index vs. U.S. High Bond Yield Spread Chart showing the current divergence between U.S. equities and high yield bond spreads, while they are generally correlated. Image: Jeroen Blokland

U.S. High Yield Credit Spreads and Recessions Chart suggesting that there is little recession fear baked into U.S. high yield credit spreads at the moment. Image: J.P. Morgan

U.S. High Yield Bonds and Leverage Loans The pace of downgrades has accelerated in the U.S. leveraged loan market, despite declining interest rates. Image: Goldman Sachs Global Investment Research

U.S. 10Y-2Y Yield Curve and U.S. High Yield Bonds Chart suggesting that high yield prices are not likely to perform well. Image: Morgan Stanley

A Widening of High Yield Credit Spreads Is Very Useful to Predict a Recession Like a yield curve inversion and real interest rates above real GDP, a widening of high yield credit spreads is very useful to predict a recession. At the present time, the bond market is not concerned about credit risk.

High Yield Credit Spread and Move Index Does higher rate credit volatility imply a widening of high-yield spreads? Image: Quill Intelligence, LLC

S&P 500 Total Return and U.S. High Yield/High Grade Usually, flight to quality in credit markets is rarely a good sign for equities, but ECB QE, Fed easing and repo operations should be positive. Image: BofA Merrill Lynch

Liquidity Premium: Investment Grade vs. High Yield Bonds The chart shows that the premium provided by illiquid IG and HY bonds has been drifting wider. Image: Goldman Sachs Global Investment Research