Credit spreads between US Investment Grade and US High Yield have - - PowerPoint PPT Presentation

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Aug 17, 2022 121 likes •171 views

Credit spreads between US Investment Grade and US High Yield have decoupled 230 950 210 850 190 US IG Credit Spread (bps) US HY Credit Spread (bps) 750 170 650 150 550 130 450 110 350 90 250 70 50 150 US Investment Grade (LHS)

SLIDE 1

150 250 350 450 550 650 750 850 950 50 70 90 110 130 150 170 190 210 230 US Investment Grade (LHS) US High Yield (RHS)

Credit spreads between US Investment Grade and US High Yield have decoupled

Source: Bloomberg LP, BAML indices, 18 July 2018

BONDVIGILANTES

US IG Credit Spread (bps) US HY Credit Spread (bps)

SLIDE 2

Source: Bloomberg LP, BAML indices, 18 July 2018

Credit Spread Differential between US high yield and EU High yield

25 75 125 175 225 Credit Spread Difference US HY - EU HY

BONDVIGILANTES

Credit Spread Differential (bps)

SLIDE 3

EM high yield investors have started to request a higher credit risk premium

300 350 400 450 500 550 600 650 US HY Spread EM HY Spread

BONDVIGILANTES

Source: Bloomberg LP, BAML indices, 18 July 2018

Credit Spread (bps)