Tag: high yield

high yield credit spreads
Bonds, Market Indicators

High yield credit spreads continue to rise

Rise in high yield credit spreads threatens recession A rising spread indicates disfavor toward junk bonds (oh so favored during speculative risk ‘on’ phases) and this behavior can eventually either grind its way toward economic recession or spike its way there (ref. 2020). Here is a longer-term view. Whether it grinds (2000) or spikes (2008 & 2020) a continued rise would eventually be a recession … Continue reading High yield credit spreads continue to rise

Gary1 Comment
Bonds, Market Indicators

High Yield credit spread rising again

Junk bond indications under rising pressure again When last we updated the High Yield spread it was easing in line with the market relief that came with a market bounce from extremely over-bearish short-term sentiment. Well, now it is back on its rising theme as junk bonds go back out of favor relative to higher quality bonds. It’s an indication of risk ‘off’ behavior as … Continue reading High Yield credit spread rising again

Gary1 Comment
Bonds, Market Indicators

Relief, in the form of credit spreads

High Yield credit spread eases On March 15 we noted that High Yield option adjusted spreads were rising, which was a distinct economic/financial negative if it were to continue. It did not continue. Along with the recent market rally the High Yield index spread has pulled back far enough to no longer be a concern, at least in the short-term. For “best of breed” top … Continue reading Relief, in the form of credit spreads

Gary
indicators
Market Indicators

Amid the noise, credit spreads continue to rise

High Yield credit spread hits its highest level since December, 2020 A feature of a weakening economy, not mention strengthening risk ‘off’ behavior is rising High Yield credit spreads. Junk bonds are out of favor as investors come to value safer liquidity over speculation and yield. Here is the longer view showing the spread’s rise into both Armageddon ’08 and the 2020 COVID crash. There … Continue reading Amid the noise, credit spreads continue to rise

Gary