Financial ConditionsICE BofAContinuous

High Yield Credit Spreads

What is High Yield Credit Spreads?

Yield spread between HY corporate bonds and equivalent-maturity Treasuries.

Why it matters

The most sensitive measure of credit stress.

How to read prints

When it rises

Credit stress rising; investors demanding more risk premium.

When it falls

Credit stress easing; risk appetite improving.

Frequently asked

What are HY credit spreads?⌄
The yield premium high-yield (junk-rated, BB and below) corporate bonds pay over comparable-maturity Treasuries. Measured via the ICE BofA US High Yield Index OAS.
What levels are normal?⌄
300-450 bp is mid-cycle normal. Below 300 bp is tight (complacency risk). 600+ bp signals recession pricing. 1000+ bp is crisis territory.
Why are HY spreads a leading indicator?⌄
They reflect lender risk appetite and default expectations, both of which move ahead of realized defaults and equity drawdowns.
What is OAS?⌄
Option-Adjusted Spread strips out the value of embedded options (calls) so spreads across issues are comparable.

Track it on Market Ontology

Monitor High Yield Credit Spreads in real time on Financial Conditions, alongside regime classification, transmission mapping, and cross-asset context.

SourceICE BofA
FrequencyContinuous
CategoryFinancial Conditions
FRED SeriesBAMLH0A0HYM2
Unit%
Related ModuleFinancial Conditions

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