Alternative Credit Letter June 2026

Growing Divergence Across High Yield Spreads
- High yield Option Adjusted Spreads (OAS) stayed near historical lows in H1 2026
- Stagflation fears drove demand for higher quality
- U.S. BB OAS tightened 10 bps since Dec-25
- U.S. CCC OAS re-widened 100 bps since Dec-25
- CCC bonds offer ~6.4% extra yield over BBs, a 14-month high
Read in-depth insights in our Fixed Income Credit Markets – June 2026