Tightening Trends:

Evaluating the Potential for Record-Breaking Spreads

Will spreads in the High Yield or Investment Grade market reach historic tights? Just how low can they go?

Margins in the HY and IG markets continue to compress, leading many investors to wonder how much tighter spreads could get. CreditSights’ acclaimed strategists address this question in two new reports, delving into previous market cycles with notably tight spreads. Following a close examination of current and historical market conditions, our team assesses the likelihood of revisiting prior all-time lows.

Equip yourself with this crucial knowledge by requesting free copies of these potent reports.

All-Time Tights in the HY Market:

The HY market is extending its hot streak. With spreads narrowing to 323 bp, the lowest level since early 2022, we see a case to be made for spreads that retest at least the 2021 tight of 301 bp. In a new report, CreditSights’ Strategy team examines current conditions and prior all-time tights from June 2007 and December 2021.

All-Time Tights in the IG Market:

The U.S. IG market has recently experienced considerable spread tightening, creating speculation that the market could match or surpass its previous narrowest spreads. Our strategists analyze the current composition of the market and compare it to spreads recorded in October 1997, March 2005, and June 2021.

Get reports on prior HY and IG cycle tights delivered to your inbox.

Winnie Cisar, CreditSights’ Global Head of Strategy, appeared on “Bloomberg Surveillance” to discuss the chances credit spreads get tighter.

Our Products

CreditSights offers credit market research, covenant analysis, and leveraged finance news to help you Know More. Risk Better. 

CreditSights

Award-winning, independent research on the global credit markets and the actionable ideas you need to help guide investment and risk management decisions.

Learn more

Covenant Review

In-depth analysis and impact assessments on current and future leveraged finance deals from the market’s trusted authority on bond and loan covenants.

Learn more

LevFin Insights

News and analysis covering the debt capital markets including 
leveraged loans, high yield, secondary trading, CLOs, middle market, and
BDCs.

Learn more

Request a Demo

Get connected with a member of our team and learn more about CreditSights research, products, and other offerings.

REQUEST A DEMO

Sign Up for Our Newsletter

Sign up to recieve our monthly newsletters to get the latest credit insights delivered direct to your inbox.

SUBSCRIBE NOW