The US corporate high-yield bond market is under serious pressure. The effective yield on US high-yield corporate bonds is up to 8.03%, its highest since April 2025. This figure has surged +104 basis points over the last 5 weeks, marking its largest 5-week increase in 17 months

The US corporate high-yield bond market is under serious pressure. The effective yield on US high-yield corporate bonds is up to 8.03%, its highest since April 2025. This figure has surged +104 basis points over the last 5 weeks, marking its largest 5-week increase in 17 months. As a result, high-yield corporate bond spreads are up to 3.02%, their highest since early-April. This represents the extra yield investors demand, on average, to hold corporate junk bonds over Treasuries. Meanwhile, average spreads for CCC-rated corporate bonds, the lowest-quality tier, have soared +400 basis points since January, to 968 basis points, their highest since November 2023. US credit market stress is intensifying.