WS #15376
Investment Grade credit spreads have touched their highest levels since April, indicating rising risk premiums in the bond market. Despite this stress, equity and crypto markets have not yet fully priced in the implications, suggesting a potential divergence. This 'VIX of bonds' rising while stocks remain calm is a classic precursor to volatility, warning of potential pressure on high-multiple growth stocks if rates remain elevated.
Bond Market Stress
Investment Grade credit spreads have touched their highest levels since April, indicating rising risk premiums in the bond market. Despite this stress, equity and crypto markets have not yet fully priced in the implications, suggesting a potential divergence. This 'VIX of bonds' rising while stocks remain calm is a classic precursor to volatility, warning of potential pressure on high-multiple growth stocks if rates remain elevated.