Investment Grade Quarterly

09 Apr 2019

2019 Q1 Investment Grade Quarterly

The performance of investment grade credit during the opening quarter of the year was in stark contrast to the final quarter of 2018, as risk assets of all stripes performed well during the first quarter. The spread on the Bloomberg Barclays US Corporate Index finished the quarter 34 basis points tighter, after opening the year [...]
29 Jan 2019

Q4 2018 Investment Grade Commentary

The final quarter of 2018 was extremely volatile, and no asset class was spared, whether it was corporate credit, Treasuries, commodities or equities. The spread on the corporate index finished the quarter a whopping 47 basis points wider, having opened the quarter at 106 before finishing at 153, the widest level of 2018. Treasury bonds [...]
19 Oct 2018

Q3 2018 Investment Grade Commentary

The theme of the third quarter was tighter spreads and higher rates. The spread on the Bloomberg Barclays US Corporate Index started the quarter at a year-to-date high of 124, at which point spreads began to march tighter, with the index finishing the quarter at an OAS of 106. The 10yr Treasury started the quarter [...]
24 Jul 2018

Q2 2018 Investment Grade Commentary

The second quarter of 2018 brought wider spreads and higher rates, which weighed on the performance of investment grade corporate credit.  The Bloomberg Barclays US Corporate Index opened the quarter at a spread of 109 basis points over Treasuries and it finished the quarter at a spread of 123.  Like spreads, Treasury rates were also [...]
09 Apr 2018

Q1 2018 Investment Grade Commentary

The first quarter of 2018 saw credit spread volatility for the first time since early 2016. The Bloomberg Barclays US Investment Grade Corporate Bond Index started the year at a spread of 93 basis points over treasuries and narrowed to 85 on February 2nd which was the tightest level since 2007. From mid‐February onward, spreads […]

30 Jan 2018

Q4 2017 Investment Grade Commentary

As the fourth quarter of 2017 came to a close, investment grade corporate bond spreads narrowed to the tightest levels of the year, and the lowest since 2007i. The Bloomberg Barclays US IG Corporate Bond Index OAS started the year at 1.22% and finished at 0.93%, which means that, on balance, credit spreads for the […]

30 Oct 2017

Q3 2017 Investment Grade Commentary

The third quarter of 2017 was a reprise of what we experienced in the first two quarters of the year investment grade corporate bond yields were lower and credit spreads were tighter. As far as fundamentals are concerned, the majority of investment grade corporate issuers are displaying earnings growth and balance sheets are generally in […]

30 Jul 2017

Q2 2017 Investment Grade Commentary

The second quarter of 2017 saw a continuation of the prevailing trend of tighter credit spreads across the US corporate bond market. This trend of tighter spreads, which has been unabated for nearly 16 months, has been a significant contributing factor to the overall positive performance of the Investment Grade corporate bond market during that […]

30 May 2017

Q1 2017 Investment Grade Commentary

After a very volatile end to the year in 2016, the first quarter of 2017 saw a much more benign movement in interest rates and corporate bond yields as most fixed income markets stabilized after a difficult fourth quarter. During the first quarter of 2017, Treasury yields traded within a fairly narrow, 24 bps range. […]

31 Dec 2016

Q4 2016 Investment Grade Commentary

Corporate Bond investors are compensated for two risks; interest rate risk and credit risk. The first, interest rate risk, is approximated by US Treasury yields. The second, credit risk, is the remuneration for the business risk of the underlying company; this remuneration is expressed as the premium received in excess of the US Treasury yield. […]