Credit and leverage
US High Yield OAS
The US high-yield option-adjusted spread, a direct gauge of lower-quality credit stress.
At a glance
US High Yield OAS: latest value and prior change
As of 2026-07-21, US High Yield OAS is 2.69 %. It is unchanged from 2.69 % on 2026-07-20.
Across 816 available observations from 2023-05-30 to 2026-07-21, the latest value is at the tie-adjusted 7th percentile.
- Observed on
- Default comparison window
- 2023-05-30–2026-07-21
- Observations · observed cadence
- 816 · 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
2023-05-30–2026-07-21
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.
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.