Flows – IG Bond Funds/ETFs and Prime Money Market Funds
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
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 High Yield Bond Index
Corporate High Yield Bond Index With high yield investors piling into risky debt, CCC spreads have collapsed the most over the past nine months. Image: Morgan Stanley Wealth Management
U.S. Energy Stocks vs. U.S. High Yield Energy Bonds
U.S. Energy Stocks vs. U.S. High Yield Energy Bonds U.S. energy stocks are historically cheap. Will the gap be closed? Image: BofA Global Investment Strategy
U.S. Corporate High Yield Bond Spreads
U.S. Corporate High Yield Bond Spreads A breakthrough in the 200-day moving average has historically been bullish for high yield. Image: Morgan Stanley Wealth Management
U.S. Dollar Index and Foreign Ownership Share in the U.S. Corporate Bond Market
U.S. Dollar Index and Foreign Ownership Share in the U.S. Corporate Bond Market Chart suggesting that the relationship is virtually non-existent between the U.S. dollar and net foreign purchases of U.S. corporate bonds. Image: Goldman Sachs Global Investment Research
Corporate Bonds – Share of Market Value in Bloomberg Barclays USD IG (AAA, AA, A, BBB)
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
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 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
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