Martin Fridson argues the defaults on high yield are at historic lows: about 3% now versus 4.5% historically – which puts the spreads in a different light.

That suggests it will take a long time before American house prices surge again, or before spreads on high-yield corporate debt get down to the lows seen earlier this year.

While commodity prices have rebounded from the lows of the past 18 months, many mining companies remain wary of reviving high-cost plans.