Corporate bond distress index (aggregate) is starting rise, and this is happening as the 2x5 FRA-OIS is starting to rise. Financial stress is starting to build. This is only going to exaggerate as rates rise.

What we are seeing in the corporate side is we are seeing a massive duration bubble. This is happening as duration is negatively correlated, so as duration rises coupon falls. Due to the Central Banks removing moral hazard everyone was essentially a risk free borrower. This then caused refinancing spreads, and this raised duration sensitivity.