While most comprehend that when buying credit-risky instruments the most critical aspect of return is the spread (or additional compensation over the risk-free rate) which itself is in 'bubble' territory; it is nevertheless spell-binding that the so-called 'High Yield' corporate bond market is now trading with a yield below 5% for the first time on record - a level at which 10 Year Treasuries were trading in July 2007...
Barclays high yield index 'yield' is now below 5% - the same as US Treasuries in July 2007!
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and the bubble in credit risk re-emerges with the Fed as provider of excess liquidity as opposed to CDO creation last time...
[7]
Charts: Bloomberg