High-yield credit spreads spike 'could signal recession'
A SURGE in high-yield credit spreads to a two-year high has sparked fears that the market for risky debt is seizing up as central banks push up borrowing costs.
Junk bonds plunged in December amid concerns of a global slowdown and tightening financial conditions. The spread between high-yield bonds and Treasury yields has also widened as the recent oil price slump hit producers, which are often funded by issuing junk bonds.
The iShares Iboxx High Yield ETF slid 7.7pc in the final qua...