High yield spreads 200 bps wider
The title is not a fact, but a premonition 😉
High yield spreads have been out of whack since at least September of last year. Unfortunately, since I’m currently on “garden leave” and no longer have access to data services, I’ll just grab a snapshot from the public page of LehmanLive
I’m still an amateur, but mark my words (as in I’m totally guessing), in the next 30 days the high-yield indices will be wider by no less than 100 bps and could be wider by as much as 200 bps. Bad news for private equity (not to mention high-yield investors).