Looking under the hood: Differentiating between CCC high yield bonds

Janus Henderson / Equity

19-10-2026

Janus Henderson’s Bradford Smith examines why historically wide CCC high-yield spreads may reflect concentrated issuer and sector stress rather than broader economic weakness.

CCC spreads have risen to around 1,000 basis points, but much of the widening is concentrated in sectors facing structural decline and issuer-specific problems.
The market is increasingly bifurcated between distressed and performing CCC bonds, with roughly 20% of the index trading at deeply distressed levels.
Excluding distressed issuers, performing CCC valuations appear far more normal, creating selective opportunities in borrowers with stronger business models.

Explore the full report to understand where value may still exist within lower-rated high yield.

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