Michael A. Gayed: High yield credit spreads at 343 bps, above 12-month low

Michael A. Gayed: High yield credit spreads at 343 bps, above 12-month low
High yield OAS 343 bps above 12-month low

High yield option-adjusted spreads (OAS) stood at 343 basis points as of November 2, according to data shared by Michael A. Gayed. The current level is 83 basis points above the 12-month low of 260 basis points set on August 28 and below the 10-year average of 383 basis points.

Gayed added that the percentile in the full ICE BofA series is 24.8, and mentioned the JOJO.Index as a resource that monitors this metric weekly.

Gayed has previously highlighted unusual yield scenarios in other asset classes. He recently noted that PSEC yielded 21% while trading at a 65% discount to NAV. In a separate report, he discussed APLD’s $3.0 billion capital expenditure alongside $116 million in expected revenue.

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