BAMLH0A0HYM2
Credit risk premium on junk bonds — the classic risk-appetite signal
Official name: ICE BofA US High Yield Index Option-Adjusted Spread
Latest value
2.9000
as of 2026-04-09
All-time percentile
7th
1-year change
-33.6%
Time series
Showing 654 of 1 307 data points
About this series
ICE BofA US High Yield Index Option-Adjusted Spread. The average yield premium that investors demand for holding below-investment-grade corporate bonds relative to risk-free Treasuries.
Why it matters: When risk appetite is healthy, investors are willing to lend to risky companies for a modest premium over Treasuries — spreads are tight. When risk appetite collapses (recessions, credit events, panics), investors demand much more compensation for default risk — spreads blow out. This makes HY spread one of the cleanest real-time readouts of credit stress, and a strong leading indicator for equity bear markets.
How to read it: Tight = risk-on, wide = risk-off. Historical normal range is roughly 3-6 percentage points (300-600 bps). Below 3% is "reaching for yield" territory (late-cycle complacency); above 8% means stress; above 15% is crisis-level (2008, briefly 2020). Sudden widening from a low base is a more reliable signal than absolute level.
Caveats: Option-adjusted means it strips out the embedded call features in HY bonds. Early 2020 and 2008 spikes stand out as the cleanest crisis signals in the modern record.