Spreading Out

We

So tired of all the darkness in our lives

With no more angry words to say can come alive

Get into a car and drive

To the other side

--Joe Jackson

Spread between high yield bonds and stocks has been widening.

But classic 'credit spreads,' i.e., difference between 'risk free' Treasury rates and bond rates, are in early stages of widening.

Interpretation: spreads have a ways to go before reaching 'blow out' levels. But they bear watching.