high-yield credit spread starting to climb

[admin]

During recessions and credit crises, the spread soars. You can see this in the chart below. It also shows what has happened to the high-yield credit spread since the 1990s, with recessions highlighted in gray...During recessions, bankruptcies spike and investors want nothing to do with corporate bonds. Their prices plummet, and their yields soar. That makes them safer to own.Today, with the spread so low, bonds are expensive.