This is unprecedented: The New York Fed’s corporate bond market high-yield distress index is down to 0.06 points, an all-time low. This index measures stress levels in the junk bond market, including liquidity, market functionality, and how easily companies can borrow. A reading this low signals extremely healthy borrowing conditions for high-yield issuers. By comparison, the index was above 0.60 during the 2020 pandemic and near 0.80 during the 2008 Financial Crisis. As a result, the high-yield corporate bond ETF, HYG, has rallied for its 3rd-consecutive year and returned +9% in 2025. The US corporate bond market is healthier than ever.(The Kobeissi Letter)