Credit and leverage
Credit Risk: HY OAS / IG OAS
The high-yield corporate bond spread divided by the investment-grade spread. The ratio shows whether the risk premium gap between credit tiers is widening or narrowing, isolating stress inside lower-quality credit.
Credit Risk: HY OAS / IG OAS latest observations
- Observed
- 2026-10-23
- Latest
- 3.71 x
- Change from previous
- ▼ -0.11 x
Check the observation dates in both the summary and chart; release and refresh times can differ.
At a glance
Credit Risk: HY OAS / IG OAS: latest value and prior change
As of 2026-10-23, Credit Risk: HY OAS / IG OAS is 3.71 x. It is 0.11 x lower than 3.82 x on 2026-10-22.
Across 454 available observations from 2025-01-02 to 2026-10-23, the latest value is at the tie-adjusted 84th percentile.
- Observed on
- Default comparison window
- 2025-01-02–2026-10-23
- Observations · observed cadence
- 454 · Daily
- Data source
- FRED
A high or low percentile does not by itself make the indicator positive, negative, or a buy or sell signal.
2026-07-23 → 2026-10-23 · x
- First
- 3.51 x
- 2026-07-23
- Latest
- 3.71 x
- 2026-10-23
- Window low
- 3.27 x
- 2026-09-01
- Window high
- 3.89 x
- 2026-10-16
The horizontal axis follows observation order; calendar intervals may differ. High and low refer to observed values within this window, not intraday or all-time extremes. Ties show the first observation date.
Time-series chart
Credit Risk: HY OAS / IG OAS
2025-01-02–2026-10-23
Long-history series are stored as real provider observations. Index, FX, VIX, and ratio charts use historical backfill where providers expose it; Korean investor flow and margin-credit feeds expand as stable historical endpoints become available.
Recent observations and calculated changes
The ten latest chart observations. Change subtracts the previous observation; intervals vary with holidays, release schedules and missing data. A difference in rates or ratios is not an investment return.
| Observed | Value | Previous date | Difference (current − previous) |
|---|---|---|---|
| 2026-10-23 | 3.71 x | 2026-10-22 | -0.11 x |
| 2026-10-22 | 3.82 x | 2026-10-21 | 0.10 x |
| 2026-10-21 | 3.72 x | 2026-10-20 | -0.11 x |
| 2026-10-20 | 3.83 x | 2026-10-16 | -0.07 x |
| 2026-10-16 | 3.89 x | 2026-10-15 | 0.05 x |
| 2026-10-15 | 3.85 x | 2026-10-14 | -0.02 x |
| 2026-10-14 | 3.87 x | 2026-10-13 | 0.06 x |
| 2026-10-13 | 3.81 x | 2026-10-12 | 0.06 x |
| 2026-10-12 | 3.75 x | 2026-10-08 | -0.09 x |
| 2026-10-08 | 3.84 x | 2026-10-07 | 0.07 x |
Source: FRED
Interpretation guide
How to read HY OAS / IG OAS as a credit-risk signal
Credit Risk: HY OAS / IG OAS divides the U.S. high-yield option-adjusted spread by the investment-grade option-adjusted spread. It shows whether riskier corporate credit is weakening faster than higher-quality credit.
What it means
A rising ratio means high-yield credit risk is widening relative to investment-grade risk. That often reflects tighter liquidity, slower growth, default concern, or a broader move away from risky assets.
- The 2.5-3.5x area is a more normal range where direction and speed matter most.
- Above 4x suggests lower-quality credit is clearly underperforming higher-quality credit.
- Above 5x points to credit stress and deserves a more conservative risk posture.
Interpretation rules
Credit can lag equities, but once it deteriorates it can pressure funding conditions and risk-asset valuations. If equities hold up while this ratio keeps rising, internal market risk is building.
- A rising ratio with a falling S&P 500 and rising VIX confirms a stronger risk-off backdrop.
- A falling ratio with improving equity breadth supports a healthier risk-appetite recovery.
- If both HY and IG spreads rise but the ratio also rises, lower-quality stress is leading.
How to respond
Use the ratio to size aggressive equity exposure, high-beta sectors, and leverage. Even if equity charts look resilient, worsening credit argues for tighter loss limits and more selective risk taking.
- Above 4x, re-check cyclical stocks and highly levered companies.
- Above 5x and still rising, reduce new leverage and avoid forced upside chasing.
- When the ratio turns lower and breadth improves, start rebuilding a risk-on watchlist.
Related views
Related indicators and radar
S&P 500
The broad large-cap benchmark for U.S. equity conditions.
Compares credit stress with the broad U.S. equity trend.
VIX Index
The U.S. equity volatility gauge for global risk aversion.
Checks whether credit stress agrees with volatility stress.
Cboe Put/Call Ratio
A U.S. options sentiment gauge comparing put volume with call volume.
Pairs credit stress with options hedging demand.
FINRA Margin Debt
Customer securities margin debit balances, a U.S. leverage proxy.
Links credit stress with leverage pressure.