Investment-Grade OAS
The extra yield investors demand for high-quality corporate bonds.
Investment-Grade OAS is at the 96th percentile since 1998, near the top of its historical range.
0.8%
96th percentile • 88% of the way to its prior froth peak
Historical context
Red bands mark major stress windows.
What this metric is telling us now
Investment-grade option-adjusted spread measures the compensation investors require for owning higher-quality corporate credit instead of Treasuries.
Why it matters
Very tight spreads can show broad credit-market comfort. It is a calmer companion to high-yield spreads and helps separate general credit complacency from junk-bond stress.
Source and caveats
- Source: FRED BAMLC0A0CM
- Update frequency: Daily
- Last updated: Jul 3, 2026
- Composite contribution: 96 subscore in Credit & Volatility; category score 78.
- Caveats: Investment-grade spreads can stay tight for long periods in healthy expansions. This is a backdrop signal, not a standalone market forecast.
Methodology note
Each metric is oriented so higher means frothier, converted to a percentile against its own history, and then averaged within its category before the category scores are averaged into the composite.
This site is for educational and informational purposes only. It is not investment advice, financial advice, tax advice, or a recommendation to buy, sell, or hold any security, asset, or strategy. The metrics, the composite bubble score, and any alerts are not forecasts and are not a signal to act. Markets can stay overvalued or undervalued for long periods, and past patterns do not guarantee future results. The data is aggregated from third-party sources, is provided "as is," and may contain errors, gaps, or delays. Do your own research and consult a licensed financial professional before making any financial decision.