Search Results for: IG bond

Flows – IG Bond Funds/ETFs and Prime Money Market Funds From record outflows to large inflows, the Fed has solved the liquidity crisis so far. Image: BofA Global Research

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

Corporate Bonds – Share of Market Value in Bloomberg Barclays USD IG (AAA, AA, A, BBB) Credit quality is deteriorating, as the amount of BBB-rated bonds, one step away from junk bonds, has doubled since 1990. Image: Deutsche Bank Global Research

Quarterly Dollar Notional Amounts of Bonds Downgraded from IG to HY The pace of rating downgrades has accelerated markedly in recent months. Image: Goldman Sachs Global Investment Research

Real Yield on U.S. Corporate Bond IG & HY vs. Equity Earnings Yield Real yields on U.S. corporate bonds (IG & HY) exceed equity earnings yield Image: Gavekal, Macrobond

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