The Earnings Yield on the Russell 2000 Index hovering at 6.95% (as of 07/05/2024), while the Effective Yield on BB-rated Corporate Bonds at 6.33%. Meanwhile, the option-adjusted spread (OAS) on BB bonds is around 187 bps, well below the longer-term average of 261 bps (see below). Be on the lookout for our CIO's upcoming article in Forbes that expounds on the narrative associated with these lower-credit rated stock and bond market dynamics.
