The Trends in the High Yield Bond Market

In 2011, yields in high yield were around 9%. Very similar to where they are today. The big difference is that five year rates were 1.5% and the average coupon at that time was over 8%. Today, we have coupons below 6%. So again, that's left credit spreads around 500 basis points. And I think another reason why we can also say that makes a little bit of sense is there's been a significant shift in quality since 2011 through 2023.