Investment Grade Quarterly
12
Jan
2023
2022 Q4 INVESTMENT GRADE QUARTERLY
It will be remembered as the year to forget for investment grade corporate credit as the asset class generated the largest negative yearly total return in its history driven by a combination of wider spreads and much higher interest rates. For the full year 2022, the option adjusted spread (OAS) on the Bloomberg US Corporate [...]
READ POST
12
Oct
2022
2022 Q3 Investment Grade Quarterly
Negative performance continued to plague the investment grade credit market during the third quarter and 2022 built on its record as the most difficult year of performance that the market has ever experienced. It was a hopeful start to the quarter, as investment grade bonds posted sharply positive returns for the month of July, but [...]
READ POST
09
Jul
2022
2022 Q2 Investment Grade Quarterly
The second quarter was another extraordinarily difficult period of performance for investment grade corporate credit. Treasury yields continued to march higher and credit spreads moved wider. The option adjusted spread (OAS) on the Bloomberg US Corporate Bond Index widened by 39 basis points to 155 after having opened the quarter at an OAS of 116. [...]
READ POST
11
Apr
2022
2022 Q1 Investment Grade Quarterly
It was an extremely painful start to the year for credit markets as performance suffered due to wider spreads and higher interest rates. During the first quarter, the option adjusted spread (OAS) on the Bloomberg US Corporate Bond Index widened by 24 basis points to 116 after having opened the year at an OAS of [...]
READ POST
11
Jan
2022
2021 Q4 Investment Grade Quarterly
Investment grade corporate credit spreads finished the year little changed. For the full year 2021, the option adjusted spread (OAS) on the Bloomberg US Corporate Bond Index tightened by 4 basis points to 92 after having opened the year at an OAS of 96. The 4th quarter saw more movement, with the spread on the [...]
READ POST
15
Oct
2021
2021 Q3 Investment Grade Quarterly
Investment grade corporate credit finished the third quarter little changed from where it began the period. The option adjusted spread (OAS) on the Bloomberg Barclays US Corporate Bond Index ended the third quarter at 84 just modestly wider from where it started at a spread of 80. Treasuries finished the quarter nearly unchanged as well. [...]
READ POST
11
Jul
2021
2021 Q2 Investment Grade Quarterly
Investment grade corporate credit experienced positive performance during the quarter with a one-two punch of lower Treasury rates and tighter credit spreads. As a result, investors were able to claw back some of the losses that were incurred during the first quarter of 2021. The option adjusted spread (OAS) on the Bloomberg Barclays US Corporate [...]
READ POST
09
Apr
2021
2021 Q1 Investment Grade Quarterly
It was a challenging first quarter for corporate bonds as rising interest rates were a headwind for performance across the fixed income universe. Investment grade credit spreads were a bright spot, having shown resiliency during the quarter, but tighter spreads could not overcome volatile interest rates. The option adjusted spread (OAS) on the Bloomberg Barclays [...]
READ POST
08
Jan
2021
Q4 2020 INVESTMENT GRADE COMMENTARY
Investment grade corporate bonds rode a roller coaster in 2020 so it should be no surprise that, after peaks and valleys, spreads finished the year nearly right where they started. The option adjusted spread (OAS) on the Bloomberg Barclays US Corporate Bond Index opened the year at 93, but soon thereafter, pandemic induced uncertainty gave [...]
READ POST
08
Oct
2020
2020 Q3 Investment Grade Commentary
Corporate credit turned in a solid performance during the third quarter. Spreads were tighter, with the option adjusted spread on the Bloomberg Barclays U.S. Corporate Index opening the quarter at 150 and closing the quarter at 136. Treasuries were almost unchanged on the quarter with the 10yr Treasury opening at 0.66% and closing at 0.68%, [...]
READ POST