5 records broken in shocking year for bonds

A number of records were broken in 2015 in corporate bond markets, but not records investors would be happy about. 1) About 9 percent of the high-yield market now boasts yields above 20 percent—the highest amount since the financial crisis. 2) Junk bonds recorded their worst annual returns in a year not marked by a U.S. recession in a decade, with a fall of 4.7 percent. 3) The dispersion in spreads on high-yield bonds has also reached a post-crisis record. 4) The amount of investment-grade bonds that were sold soared to an “unprecedented” $1.3 trillion, Goldman Sachs said. The number of individual deals, however, was the lowest in more than a decade. 5) A record share of the corporate bond market is owned by mutual funds and exchange-traded funds, fuelling liquidity concerns. Other records broken in 2015 include the highest volatility in money flowing in and out of high-yield bond ETFs, the largest outflows from investment-grade mutual funds on record, plus a dwindling supply of CCC-rated debt. Full story available here: (VIEW LINK)


MORE ON



Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.