Thanks, Fed! 85% Of High Yield Bonds Have Negative Real Returns

Reid then shares the following chart showing that a “stunning” 85% of the US HY market has a yield below the current rate of inflation. While that proportion has been elevated for a few months now ever since the advent of the Fed’s covid response policy, it had never been above 10%, and rarely been much above zero. In fact, at the end of last year it was less than 4%.