This guest post previously appeared at SoberLook.
On its risk appetite index, Credit Suisse views the index value of 5 as “euphoria”. And we are headed there, as markets embrace risk.
SoberLookThis is not surprising given where credit markets are trading. As an example, the Merrill European High Yield Index average yield is now below 4.5% (4.46% to be precise). Keep in mind this is sub-investment grade debt mostly from European issuers. The yield on these bonds is now less than half what it was just a year ago.
FREDNot much else to say here other than enjoy it while it lasts.
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