Liquidity Premium and IG Bonds The spread between low liquid and high liquid IG bonds is widening, despite the rally and the belief of an improvement in US-China trade tensions. Image: Goldman Sachs Global Investment Research
Duration in Investment Grade and High Yield Corporate Bond Indices While yields on junk bonds are at record lows, average durations have been shortening for HY bonds and increasing for IG bonds since the 2000’s. Image: Deutsche Bank Global Research
Corporate Bonds: IG Downgrade to HY and BBB Share of U.S. IG Market This chart highlights the resilience of BBB-rated bonds. BofA believes that there is little risk that IG ratings will fall to junk status in the next recession. Image: BofA Global Research
S&P 500 Equal Weight Index vs. S&P 500 (Price Relative) and U.S. 30-Year Bond Equity markets suggest new lows in bond yields. Image: BofA Global Investment Strategy
Stocks, Bonds, Foreign Exchange and Commodities Outperformance Stocks, bonds, FX and commodities outperformed in 2019. Image: Deutsche Bank Global Research
High Yield CCC-Rated Bonds Consumer-related and technology industries now represent more than one-third of CCC issues. Image: Arbor Research & Trading LLC
S&P 500 Index vs. U.S. High Bond Yield Spread Chart showing the current divergence between U.S. equities and high yield bond spreads, while they are generally correlated. Image: Jeroen Blokland
U.S. High Yield Bonds and Leverage Loans The pace of downgrades has accelerated in the U.S. leveraged loan market, despite declining interest rates. Image: Goldman Sachs Global Investment Research
U.S. 10Y-2Y Yield Curve and U.S. High Yield Bonds Chart suggesting that high yield prices are not likely to perform well. Image: Morgan Stanley
High-Yield Bond Returns Year-to-date, Caa rated high-yield bond returns have lagged those with higher average credit ratings. Image: Charles Schwab