U.S. High Yield

U.S. High Yield Credit spreads are fine. Could the market go wrong by predicting significant interest rate cuts? Picture source: Fidelity Investments

Global High Yield Bond Spreads Since 2017

Global High Yield Bond Spreads Since 2017 High yield bond spreads have widened recently (difference in yields between high yield bonds and comparative government bonds). Picture source: BlackRock

U.S. High-Yield Credit Spreads

U.S. High-Yield Credit Spreads High-yield credit spreads are still below recession level (red line). A widening high-yield spread remains a useful indicator for predicting a coming recession in the current interest rate environment. See also “A Widening of Credit Spreads Is Very Useful to Predict a Recession“