US junk bond yields hit 18.0%, their highest since 2020, with spreads widening to levels unseen since the 2022 bear market.
Macro & Markets ·
US junk bonds rated CCC and below reached an effective yield of 18.0%, the highest since the 2020 pandemic, after climbing 500 basis points over six months. Credit spreads for the same category hit 13.4% above Treasury yields, surpassing 2022 bear market levels by 464 basis points and marking the widest gap since July 2020. The 6-month yield surge represents the largest such increase since the 2022 downturn, signaling intensifying stress in lower-grade corporate debt markets.