KEY OBSERVATIONS
For the month of June 2023, the yield on the 10-year US Treasury Note ended at 3.84%, 19 basis points higher from the previous month. The Bloomberg US Corporate Index tightened by 15 basis points to 1.23% over Treasuries. The A Rated Corporate Credit Spread decreased by 13 basis points to 1.04%. The BBB Rated Corporate Credit Spread decreased by 17 basis points to 1.52%.
Archives: Downloads
A Tale of Two Drawdowns
2022 was the worst year on record for investment grade corporate bonds largely due to a dramatic increase in interest rates. With this recency bias and the markets focused on the actions of the US Federal Reserve, many investors have looked to other income producing asset classes as a replacement for their corporate bonds. While these asset classes may have outperformed in a rate hiking event, it is important to remember that these other asset classes have a risk profile all their own during a credit event.
May 2023
KEY OBSERVATIONS
For the month of May 2023, the yield on the 10-year US Treasury Note ended at 3.65%, 22 basis points higher from the previous month. The Bloomberg US Corporate Index widened by 2 basis points to 1.38% over Treasuries. The A Rated Corporate Credit Spread increased by 1 basis points to 1.17%. The BBB Rated Corporate Credit Spread increased by 3 basis points to 1.69%.
April 2023
KEY OBSERVATIONS
For the month of April 2023, the yield on the 10-year US Treasury Note ended at 3.43%, 4 basis points lower from the previous month. The Bloomberg US Corporate Index tightened by 2 basis points to 1.36% over Treasuries. The A Rated Corporate Credit Spread decreased by 2 basis points to 1.16%. The BBB Rated Corporate Credit Spread decreased by 2 basis points to 1.66%.
Q1 – 2023
”Since the full impact of monetary policy actions can take as much as 18 months to work its way through the economy, we will continue to look closely at available data to determine what, if any additional actions we may need to take.” (Patrick Harker, Philadelphia Fed 4/11/23 source: Bloomberg)
March 2023
KEY OBSERVATIONS
For the month of March 2023, the yield on the 10-year US Treasury Note ended at 3.47%, 45 basis points lower from the previous month. The Bloomberg US Corporate Index widened by 14 basis points to 1.38% over Treasuries. The A Rated Corporate Credit Spread increased by 14 basis points to 1.18%. The BBB Rated Corporate Credit Spread increased by 17 basis points to 1.68%.
February 2023
KEY OBSERVATIONS
For the month of February 2023, the yield on the 10-year US Treasury Note ended at 3.92%, 41 basis points higher from the previous month. The Bloomberg US Corporate Index widened by 7 basis points to 1.24% over Treasuries. The A Rated Corporate Credit Spread increased by 7 basis points to 1.04%. The BBB Rated Corporate Credit Spread increased by 7 basis points to 1.51%.
January 2023
KEY OBSERVATIONS
For the month of January 2023, the yield on the 10-year US Treasury Note ended at 3.51%, 37 basis points lower from the previous month. The Bloomberg US Corporate Index tightened by 13 basis points to 1.17% over Treasuries. The A Rated Corporate Credit Spread decreased by 12 basis points to 0.97%. The BBB Rated Corporate Credit Spread decreased by 15 basis points to 1.44%.
Q4 – 2022
“It may be a mild recession. It may not be.” (Jamie Dimon, JP Morgan Chase CEO on a call with reporters as reported in The Wall Street Journal 1/14/23)
Decemeber 2022
KEY OBSERVATIONS
For the month of December 2022, the yield on the 10-year US Treasury Note ended at 3.88%, 27 basis points higher from the previous month. The Bloomberg US Corporate Index tightened by 3 basis points to 1.30% over Treasuries. The A Rated Corporate Credit Spread decreased by 3 basis points to 1.09%. The BBB Rated Corporate Credit Spread decreased by 4 basis points to 1.59%.