Credit Market Complacency Gives the Fed Room to Crush the Stock Market – Mish Talk

Chart Notes

  • Yields are monthly averages except for current month
  • Current month reflects yields on May 17, 2022

Yield Categories

  • AAA: Top Tier
  • BBB: Lowest Investment Grade
  • BB: Highly Speculative Junk Bonds
  • CCC: Vulnerable to Nonpayment

Complacency Abounds 

  • CCC-rated debt currently yields 12.93% vs the 2008 peak of 39.24%. In 2016, a non-recession year, CCC-rated debt yielded 20.82%.
  • BBB-rated debt currently yields 4.78% vs the 2008 peak of 9.79%. In 2018, a non-recession year, BBB-rated debt yielded 4.73%.
  • BB-rated debt currently yields 6.07% vs the 2008 peak of 15.75%. In 2016 a non-recession year, BBB-rated debt yielded 6.58%.



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