High yield check/"Really its value, value, value"
Keep in mind that today’s PCE inflation stats along with income, spending and also the release of durable goods are all January data. With inflation specifically, we saw the CPI for February last week so this is all old news, especially with what has happened over the last few weeks.
With the heightened focus on what is going on in private credit, I keep watching to see if there is any spillover into high yield. While there has been a lift off the lows in spreads, it still remains near the multi year bottom at just under 300 bps.
High Yield Spread to Treasuries
Right to some earnings call highlights and great insight into the US consumer.
From Dick’s Sporting Goods, up 1% yesterday in a tough tape:
