The Acquirers Podcast · Thursday, October 29, 2026
Tim Melvin analyzes current credit markets using methodology from Dan Rasmussen at Verdad. He notes that while overall spreads remain tight, lower-tier credit like triple-C paper is facing severe stress with yields reaching 18%, signaling potential trouble for lower-end borrowers.
“We are now at 1,375 basis points in triple C and under. Current coupon CCC yields are 18%.”
“That's we're seeing, much like in the consumer market, the low end is suffering. And five years ago, they could have issued triple C paper at eight and three quarters, eight and a half... You're not refinancing that today at that rate. You're refinancing closer to that 18.”