The following chart shows the average high yield bond spread (as measured by the JPMorgan HY index) vs. VIX. The divergence seems to indicate that credit is cheap (wide) relative to implied vols.
|HY Index spread (STW) vs. VIX|
|Absolute yield (YTW) for the JPM HY Index (Bloomberg)|
As far as VIX is concerned, the recent drop definitely looks overdone relative to other risk indicators. This suggests that if the deviation between HY spreads and VIX begins to recede, the next leg of the convergence will be more from rising VIX levels than significant tightening in spreads.