Credit and leverage

US High Yield OAS

The option-adjusted spread on US high-yield corporate bonds, the extra yield demanded over Treasuries. It widens as default risk perception rises, making it one of the fastest gauges of stress in risk assets.

Latest

2.65 %

-0.01 %

Date2026-09-03
History2023-05-30–2026-09-03
Observations845
FRED

At a glance

US High Yield OAS: latest value and prior change

As of 2026-09-03, US High Yield OAS is 2.65 %. It is 0.01 pp lower than 2.66 % on 2026-09-02.

Across 845 available observations from 2023-05-30 to 2026-09-03, the latest value is at the tie-adjusted 3rd percentile.

Observed on
Default comparison window
2023-05-302026-09-03
Observations · observed cadence
845 · Daily
Data source
FRED

A high or low percentile does not by itself make the indicator positive, negative, or a buy or sell signal.

Time-series chart

US High Yield OAS

2023-05-30–2026-09-03

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.

US High Yield OAS · %
ObservedValuePrevious dateDifference (current − previous)
2026-09-032.65 %2026-09-02-0.01 %p
2026-09-022.66 %2026-09-010.01 %p
2026-09-012.65 %2026-08-310.02 %p
2026-08-312.63 %2026-08-280.03 %p
2026-08-282.60 %2026-08-27-0.03 %p
2026-08-272.63 %2026-08-26-0.04 %p
2026-08-262.67 %2026-08-24-0.02 %p
2026-08-242.69 %2026-08-21-0.01 %p
2026-08-212.70 %2026-08-20-0.05 %p
2026-08-202.75 %2026-08-190.02 %p

Source: FRED

Interpretation guide

US High Yield OAS: reading the market's risk thermometer

US High Yield OAS is the option-adjusted spread of speculative-grade (BB and below) corporate bonds over Treasuries, calculated by ICE BofA and published daily via FRED. It is the extra yield the market demands to lend to lower-quality companies, which makes it the first market-based gauge to widen when risk appetite cools.

The language of spread levels

High-yield spreads have historically carried fairly distinct zone meanings: the 3% area (roughly 300bp) reflects a comfortable credit market, 5% and above signals caution, and spikes toward 8-10% have marked genuine crisis episodes.

  • Stable readings in the 3% range imply low default concern and a supportive backdrop for risk assets broadly.
  • A push above 4% with continued widening means refinancing strain and growth worries are entering the price.
  • A rapid move above 5% marks a credit-stress regime and calls for auditing the defensiveness of equity positions.

Speed matters more than level

Reaching 5% over six months and reaching it in a few weeks are entirely different events. Sharp widening often travels with liquidity strain and forced selling, so always read the pace of change alongside the absolute level.

  • Widening of 100bp or more within a short window counts as a stress event regardless of the starting level.
  • A long stretch of tight spreads is not itself a sell signal; wait for evidence of a directional turn.
  • Equities holding firm while high-yield spreads grind wider is the classic case of credit warning first.

Avoiding misreads, plus the Korea link

Index composition shifts over time: the 2015-2016 spike was heavily an energy-sector story rather than economy-wide stress. Make it a habit to decompose whether widening is sector-driven or reflects broad risk aversion.

  • Read it alongside US Investment Grade OAS and the Credit Risk: HY OAS / IG OAS ratio on TapeFlow to gauge how deep the stress runs.
  • High-yield blowouts often coincide with won weakness and foreign selling, so review KOSPI downside exposure in those windows.
  • Because the index's rating mix evolves, an identical spread level may not represent identical risk across eras.