The US high-yield credit market stress is rising:

Credit spreads for CCC-rated and lower corporate bonds are up to 12.0%, their widest level since November 2022.

Over the last 5 months, this figure has surged +298 basis points, surpassing the April 2025 peak of 11.4%.

This represents a comparable increase to that seen during the 2022 bear market and the February-April 2025 market correction.

If this pace continues, credit spreads for the lowest-rated US corporate bonds will exceed the 2022 peak of 12.9% as soon as this month.

To put this into perspective, the 2020 pandemic high was 19.6%.

Credit stress is rising sharply beneath the surface.

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶