Most investors will have heard the expression of the “canary in the coalmine”. Coal miners used canaries as an early warning sign that toxic gases were filling the mine, with a dead canary meaning miners should run for their lives. Over the last year the canary for high yield debt has gone silent, setting off the alarm for investors. It’s too early to say whether the canary is dead or just having a nap, but fundamentals and prices are clearly signifying a tougher environment for sub-investment grade debt.