High Yield Spread falls to 10-yr Average
The high yield spread (red line) has fallen from March highs to near its 10-year average of 4.96%. The spread peaked this year on March 23rd at 10.87%; this also is the day the S&P 500 (blue line) had its low close for the year.
However, while the S&P has recovered and recently hit a new peak, the high yield spread closed yesterday (9/9/20) at 5.16%. This is well above lows very early in the year and the 10-year low of 3.16% (10/3/18).
The high yield spread had peaks in 2011 and 2016 that exceeded 8.0%. However, during the global financial crisis, the spread reached a high of 21.82% in December 2008.