– 15% of high yield bonds trade with a yield higher than 10%
– Retail investors have in recent weeks been selling IG and HY, and put volumes on IG and HY ETFs remain very elevated
– Corporate leverage has been declining since the pandemic
– IG and HY index durations are coming down; i.e. credit is becoming less sensitive to rising rates
– Measures of bond market liquidity show liquidity is much worse in UK bond markets than in the US, EU, and Germany
– Default rates on credit cards and auto loans are normalizing to pre-pandemic levels
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