On Nov. 20, Dave added a great question to the comments on this blog. He requested a source for the critical spread between junk bonds and treasuries.

Here is my response: I use the Merrill Lynch High Yield Constrained Index at http://online.wsj.com/mdc/public/page/2_3022-bondbnchmrk.html

from which I subtract the ten-year treasury note on the Fed's website:
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml

The index reached a new peak yesterday at 21.63%; the spread is at an all-time high of 18.91% or 1,891 basis points. A year ago that spread was about 250 bp.