US Junk Bond vs Leveraged Loan Yield History

US Junk Bond vs Leveraged Loan Yield History shows where we are in the interest rate cycle.
We are late cycle and chances of a credit cycle ending are high.

Usually High Yield bonds trade at a higher yield than loans but this has inverted due to reversal of US Fed as they no longer plan to raise rates.

The average yield on Barclays High Yield Index is now 6.5% down from 8% at end of 2018. US 10 year Yield is now 2.53% with a spread below 4%. During 2001 internet bubble crash High Yield bonds yielded 10% and in 2008/2009 financial crisis they yielded 20%+.

I suspect we are an environment of low interest rates creating higher risk taking. Not sure when the tide will turn but some day interest rates will normalize. US Fed Funds Rate in 2000 was 6.5% and it reached 0.25% from 2009-2011 and is now at 2.5%. Political interference is a factor so it is impossible to predict what happens next. As long as rates remain low borrowers benefit at the expense of savers.