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Nosebleed Valuations Persist In US High Yield

Nosebleed Valuations Persist In US High Yield

Via VariantPerception.com,

In August, we had reviewed a few charts showing that US high yield valuations were divorced from fundamentals, as well as to other yield products. This week, refreshing those charts, we can see that things are just as bad.

The top-left chart shows that US high yield spreads are diverging from the tightening of bank lending standards relative to credit demand.