Chart 8
Investors are taking on more and more risk: real yields on high-yield corporate bonds are at 15-year lows.
Date Yield on KBD high-yield corporate bond index less inflation (percentage points)
Aug-91 9.28
Sep-91 9.78
Oct-91 9.75
Nov-91 9.38
Dec-91 9.94
Jan-92 8.95
Feb-92 8.25
Mar-92 7.91
Apr-92 8.00
May-92 8.05
Jun-92 8.01
Jul-92 7.56
Aug-92 7.57
Sep-92 7.68
Oct-92 8.00
Nov-92 7.87
Dec-92 7.84
Jan-93 6.83
Feb-93 6.48
Mar-93 6.34
Apr-93 6.18
May-93 6.00
Jun-93 5.82
Jul-93 5.97
Aug-93 6.44
Sep-93 6.62
Oct-93 6.34
Nov-93 6.33
Dec-93 6.26
Jan-94 6.32
Feb-94 6.50
Mar-94 7.41
Apr-94 8.13
May-94 8.23
Jun-94 8.07
Jul-94 8.05
Aug-94 7.87
Sep-94 7.87
Oct-94 8.36
Nov-94 8.60
Dec-94 8.52
Jan-95 8.19
Feb-95 7.69
Mar-95 7.72
Apr-95 7.12
May-95 6.78
Jun-95 6.94
Jul-95 7.04
Aug-95 7.43
Sep-95 7.45
Oct-95 7.24
Nov-95 7.33
Dec-95 7.22
Jan-96 6.83
Feb-96 6.77
Mar-96 6.93
Apr-96 7.05
May-96 7.13
Jun-96 7.29
Jul-96 7.29
Aug-96 7.27
Sep-96 6.77
Oct-96 6.86
Nov-96 6.42
Dec-96 6.17
Jan-97 6.54
Feb-97 6.27
Mar-97 7.21
Apr-97 7.55
May-97 7.35
Jun-97 7.14
Jul-97 6.79
Aug-97 6.88
Sep-97 6.62
Oct-97 6.86
Nov-97 7.04
Dec-97 7.24
Jan-98 6.99
Feb-98 7.08
Mar-98 7.04
Apr-98 7.05
May-98 7.00
Jun-98 7.08
Jul-98 6.96
Aug-98 8.36
Sep-98 8.52
Oct-98 8.92
Nov-98 7.97
Dec-98 7.95
Jan-99 7.83
Feb-99 8.04
Mar-99 7.73
Apr-99 6.83
May-99 7.71
Jun-99 7.91
Jul-99 7.92
Aug-99 8.11
Sep-99 8.01
Oct-99 8.16
Nov-99 7.79
Dec-99 7.77
Jan-00 7.96
Feb-00 7.47
Mar-00 7.30
Apr-00 8.08
May-00 8.43
Jun-00 7.49
Jul-00 7.51
Aug-00 7.51
Sep-00 7.61
Oct-00 8.12
Nov-00 8.93
Dec-00 8.31
Jan-01 6.73
Feb-01 6.81
Mar-01 7.90
Apr-01 7.67
May-01 7.18
Jun-01 7.92
Jul-01 8.27
Aug-01 8.20
Sep-01 9.52
Oct-01 9.49
Nov-01 8.89
Dec-01 9.55
Jan-02 9.75
Feb-02 9.71
Mar-02 9.07
Apr-02 8.70
May-02 9.98
Jun-02 10.40
Jul-02 10.41
Aug-02 9.69
Sep-02 10.31
Oct-02 9.53
Nov-02 8.35
Dec-02 8.35
Jan-03 7.85
Feb-03 7.32
Mar-03 6.80
Apr-03 6.78
May-03 7.05
Jun-03 6.54
Jul-03 6.78
Aug-03 6.46
Sep-03 6.01
Oct-03 5.82
Nov-03 6.02
Dec-03 5.30
Jan-04 4.97
Feb-04 5.38
Mar-04 5.23
Apr-04 4.90
May-04 4.89
Jun-04 4.53
Jul-04 4.65
Aug-04 4.56
Sep-04 4.56
Oct-04 3.46
Nov-04 3.03
Dec-04 3.13
Jan-05 3.75
Feb-05 3.47
Mar-05 4.19
Apr-05 4.21
May-05 4.64
Jun-05 4.76
Jul-05 3.84
Aug-05 3.60
Sep-05 2.84
Oct-05 3.41
Nov-05 4.32
Dec-05 4.27
Jan-06 3.57
Feb-06 3.88
Source: Bloomberg, Bureau of Economic Analysis