The size of the high yield correction:
"I think perhaps 3300 basis points maybe even more if several events happen at the same time. And don't forget we were at 2000 over, now we're at 450 over. It could go back to 780 even 1000 over if things really turn bad but I don't expect it in 2010"
Altman also thinks it's "even money" that Greece will default in 1.5 or 2 years and sees Greek contagion risk spilling into Spain, Portugal and other EU countries with high debt/GDP, deficits and unemployment. This will also mean tough times for the Euro. Watch the video.
I recently compared Treasury Bond ETFs to Investment Grade and High Yield Bond ETFs in my previous post and embedded a Forbes Video analysis on high yield bond ETFs. So for spreads to widen, Treasury yields need to fall or high yield bond yields need to spike.
$JNK (SPDR Barclays High Yield Bond ETF) (Courtesy of Stockcharts.com)
$HYG (iShares iBoxx High Yield Corporate Bond Fund)