High yield spreads continue to tighten - the Barclays index is at 572 bps, near its low for the...

|By:, SA News Editor

High yield spreads continue to tighten - the Barclays index is at 572 bps, near its low for the year - even as the default rate on junk bonds has quietly turned higher, notes Rom Badilla. At 2.13% (based on dollar amounts), the default rate remains well below the historical average, but spreads and defaults do tend to move together.