Credit spreads are not confirming the equity melt-up
macro_owl · Top Contributor · ▲ 96 · May 30, 2026
Equities ripping while HY OAS drifts wider is the kind of divergence that resolves violently. Not a call to sell — a call to size correctly. Pair this with the macro regime strip: when rates vol is elevated AND credit is widening, single-name dispersion tends to spike. Good environment for relative-value, bad for naked beta.