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. You may also like “A Widening of Credit Spreads Is Very Useful to Predict a Recession“

One-Year U.S. Treasury Credit Default Swap Spread

One-Year U.S. Treasury Credit Default Swap Spread The one-year U.S. Treasury credit default swap spread is currently twice what it was during the 2011 and 2013 debates over the debt ceiling, indicating that there is greater concern in the market about the risk of default. Image: Morgan Stanley Wealth Management

Credit Risk – U.S. BBB Spreads

Credit Risk – U.S. BBB Spreads Outside of GFC and the Great Depression, U.S. BBB spreads have never been higher. Image: Deutsche Bank

U.S. High Yield Corporate Bond Spreads

U.S. High Yield Corporate Bond Spreads While tight high-yield credit spreads often indicate strong market confidence, they can also be a warning sign of excessive investor complacency. Given this dual nature, it’s crucial for investors to monitor credit spreads closely. Image: Topdown Charts

U.S. High Yield Spreads

U.S. High Yield Spreads Having tight credit spreads is like being on a rollercoaster with no safety bar—looks fun until you realize you should’ve paid more attention! Image: Bloomberg

1-Year Implied Volatility vs. IG Spreads

1-Year Implied Volatility vs. IG Spreads Credit spreads are widening and BofA still sees a rates shock this year. Image: BofA Global Investment Strategy