Macro Credit Model

The CandelaCharts - Macro Credit Model is an institutional-grade macroeconomic indicator designed to track credit market health by monitoring corporate bond spreads.

Credit markets are often considered the "smart money" of the financial world. They tend to sniff out economic weakness and systemic stress long before equity markets react. By measuring the excess yield investors demand for bearing credit risk—specifically High Yield (Junk) bonds versus Investment Grade bonds—this model provides an early warning system for impending market corrections or recessions.