CAM Investment Grade Weekly Insights

Investment grade credit spreads were tighter for the fourth consecutive week.  The Bloomberg Barclays US Corporate Index closed Thursday at an OAS of 210 after closing the prior week at 233. The tone midway through the day on Friday is mixed but spreads look as though they will finish the day tighter as stocks drift higher.  Through Thursday, the index total return for the year was +1.35%.

The primary market posted another strong week and exceeded most expectations for supply.  Issuers brought $53.2bln in new debt through Thursday and there are several benchmark deals pending in the market on Friday that will look to push the weekly total toward $60bln.  Expectations are for another robust week to follow but issuance should abate near the end of the month as earnings season stars to pick up steam.

Investment grade credit saw the single largest weekly inflow ever and the largest since October 2014. According to data compiled by Wells Fargo, inflows for the week of April 9-15 were +$12.2bln which brings the year-to-date total to -$95.3bln.