Both measure the extra yield US corporate bonds pay over Treasuries. The high-yield spread covers bonds rated below investment grade (BB+ and lower), the investment-grade spread covers BBB− and above, so high yield is wider and swings more when investors reprice default risk. On 2026-10-13, the high-yield spread was 316.0 bps and the investment-grade spread 83.0 bps, a gap of 233.0 bps.
| High-yield spread | Investment-grade spread | |
|---|---|---|
| What it measures | Extra yield of US high-yield (below investment grade) corporate bonds over Treasuries, option-adjusted. | Extra yield of US investment-grade corporate bonds over Treasuries, option-adjusted. |
| What moves it | Investors' pricing of default risk for weaker companies: earnings, default rates, risk appetite and fund flows. | Pricing of credit risk for higher-rated companies, new-issue supply, and demand from insurers, pension funds and foreign buyers. |
| Frequency | Daily (business days) | Daily (business days) |
| Unit | Basis points | Basis points |
| Latest value | 316.0 bps (2026-10-13) | 83.0 bps (2026-10-13) |
| Change over 1 year | -2.0 bps | +2.0 bps |
| Role in the DLI | Input, Credit / Intermediation group | Not an input (shown for context) |
| Source | FRED · BAMLH0A0HYM2 | FRED · BAMLC0A0CM |
Gap (high yield − investment grade) 233.0 bps (2026-10-13) · Change over 1 year: -4.0 bps
Computed on this page from the two series, for display only.
Both lines share one axis and unit. History on this page starts 2023-10-16.
Both are option-adjusted spreads from ICE BofA indexes, built the same way over the same Treasury curve, so they respond to the same broad forces: growth, risk appetite and flows into credit funds. They usually widen and tighten together.
The difference is sensitivity. Investment-grade issuers rarely default, so their spread moves mostly with funding conditions and the supply of new bonds. High-yield issuers default far more often, so their spread carries more default risk and moves several times as far in a selloff.
Stress that starts in weaker borrowers shows up in high yield first. In 2015–16, falling oil prices hit energy issuers, a large part of the high-yield market, and the high-yield spread widened much more than investment grade. In March 2020 both blew out together.
Investment-grade spreads can also move on their own, for example on heavy new issuance or shifts in demand from insurers, pension funds and foreign buyers.
The gap of 233.0 bps on 2026-10-13 is wider than on 78% of days since 2023-10-16 in this page's history.