Weekly Commentary: Peak Dance Moves

2025-08-04 04:49:00 ET

High-yield CDS (credit default swap) prices surged 22.4 this week to 336 bps, the largest weekly move since the (liberation day) week of April 4th (62 to 439 bps). Friday’s 13 bps jump was the biggest daily increase since May 21st (reports of Israel's preparation for strikes on Iran’s nuclear facilities). Investment-grade CDS rose four this week to 54 bps, the most since the week of May 23rd. Friday’s 2.8 bps was the largest daily increase since May 21st.

High-yield spreads widened 23 bps Friday to a five-week high of 301 bps, the biggest upside move since April 4th (up 40 to 427 bps). The week’s 27 bps widening was the most since the week of April 4th (87 bps). Investment-grade spreads widened four Fridays (to 80 bps), the largest since the seven bps jump on April 7th (to 116 bps).

Leveraged loan prices dropped 0.22 this week to 97.31, the largest drop since the week of April 11th (down 0.26 to 94.75)....

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