tvb

High Yield Corporate Spreads Not Yet at Great Depression Levels

2 glaring problems:

1.) Your chart show yields not spreads. Spreads are the difference between risk-free rates (Treasuries) and corporate bonds and are the relevant metric to consider when evaluating risk-premiums for high-yield bonds. A lot of the large yield movements you see in your chart are largely driven by moments in Treasury/risk-free rates (which were in the teens in the early 80's) and NOT not spreads.

2.) High-yield bonds are considered those rated Ba1/BB+ and below and your graph shows yields of investment grade bonds.