Is a US credit event on its way? The North American High Yield Credit Default Swap Index has surged 377 points, the highest since the August 2024 sell-off, per ZeroHedge. This index tracks the 100 most liquid North American companies with high-yield credit ratings. The North American Investment Grade Credit Default Swap Index jumped to 62 points, the highest in at least 15 months. This index tracks the 125 most liquid North American companies with investment-grade credit ratings. As a result, the cost of protection against a default or bankruptcy of these companies is skyrocketing. US credit markets are cracking.