Mumbai, Sept. 19 -- Bank of International Settlements or BIS stated in a latest update that broad risk-on sentiment seen recently is being reflected in global credit markets too. Credit spreads in the high-yield segment compressed significantly in both the US and Europe, to be well below historical norms, and even close to historical lows in the US. The narrowing of spreads was associated with rising yields on government bonds, but such compression of spreads is at odds with default rates of high-yield bonds being elevated and marginally ticking up, especially in the US. As such, narrow spreads mainly reflected reduced credit risk compensation by investors. In line with a risk-on environment, high-yield issuance also rebounded and private...