Stocks

U.S. High-Yield Bond Market Hit with Indigestion

Guavy AI Editorial Team Published September 28, 2026

Instruments

The U.S. high-yield bond market is experiencing 'indigestion' due to a surge in September issuance and rising Treasury yields, according to Goldman Sachs chief credit strategist Amanda Lynam.

High-yield bond issuance reached $38.51 billion in September, the highest level this year, driven by multiple non-investment-grade bond offerings, including a massive $10 billion junk bond deal from SoftBank Group Corp.

Lynam noted that the market is now facing similar 'phased supply indigestion' that affected the investment-grade market earlier this summer. The average extra yield on U.S. high-yield corporate bonds over Treasuries widened by 12 basis points to 294 basis points, the highest since April.

The key question Goldman Sachs is watching most closely is: at what point does rate volatility rise enough to undermine investor confidence in allocating to corporate credit?

U.S. High-Yield Bond Market Hit with Indigestion

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