Hey Ozi, in early October US high-yield spreads declined to the narrowest level since July 2007 (when the spread between junk and treasury yields bottomed as stocks were topping). Here we are again!
In just the last 6 weeks credit spreads have widened 36% leading stocks lower. As liquidity dries up spreads will widen further and faster and stocks and other risk assets will plunge. Those who failed to take the warning in July 2007 should heed it now.
