VIX vs. Credit Spreads

The VIX has a 15 handle on it for the first time since last summer.  At 15, it's back to an area that it hasn't been able to break through since before the credit crisis.  In 2006 though the VIX got into the low teens and bottomed around 10.

Another indicator of financial stress that hasn't been able to reach pre-crisis levels are investment grade credit spreads, which have traded at a structurally higher level since 08 despite seeming to find a bottom/resistance point in the 200 bps area.  One thing that's interesting in comparing these two metrics today is that as the VIX has headed lower, credit spreads haven't totally confirmed the move and still remain elevated compared to the last summer.

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