CCC JUNK BOND YIELDS SURGE TO 18%

The yield on CCC-rated and lower US corporate junk bonds, tracked by the Federal Reserve using ICE BofA data, closed near 18.0% this week. Six months earlier, in late April, that same yield sat close to 13.0%, meaning borrowing costs for the riskiest companies have jumped roughly five percentage points in half a year. Funds like $HYG cover the broader high-yield market, but the CCC tier is where the damage is concentrated. The move marks one of the sharpest deteriorations in low-grade credit conditions since spreads blew out in 2022, a warning sign for companies that rely on refinancing weak balance sheets.