First, about the Fed.
I believe it is very, very early in its interest rate battle against inflation. The chart below shows that it has taken only baby steps in tightening: look at how drastically the blue and red lines diverge, mostly because the FedFunds rate I still so very low versus inflation, current and expected. So, there is much more upside to come.
Second, on risk appetite.
Spreads between junk bonds and Treasurys are still very near historical lows - unrealistically low, in my opinion. I believe investors are still expecting (hoping) that there won’t be a full blown-out recession in the near future, so they’re still pretty blasé about bankruptcy risk.