Indication of credit contraction is displayed by the yield spread between the Junk bond and treasuries.

HYG is etf is investment grade corporate bond etf and IEF is 7-10 years treasury bond etf.

When difference in HYG yield and IEF increases credit is contracting.

There are several Junk bond to Treasury ratio one can monitor: MUT/TLT, and JNK/TLT…

Junk to Treasury ratio is giving the warning what more to come in the general market.

Below daily and weekly charts tell the story : Market is highly co-related to the ratio. Third chart shows MUT /TLT vs SPX.