U.S. High Yield Corporate Bond Spreads

U.S. High Yield Corporate Bond Spreads While tight high-yield credit spreads reflect strong market confidence, they also warrant caution as they may mask underlying vulnerabilities and investor complacency. Therefore, vigilant monitoring of credit spreads is essential. Image: Topdown Charts

After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added

After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added While U.S. corporate profits fell in Q1 2025 due to higher costs and economic uncertainty, they remain historically high, reflecting both the strength and the vulnerability of large companies in the current economic climate. Image: Bloomberg

S&P 500 and Treasury Bond to Corporate BB High Yield Spread

S&P 500 and Treasury Bond to Corporate BB High Yield Spread Widening credit spreads often signal upcoming declines in the S&P 500, serving as a valuable leading indicator of equity market stress because they typically react early to shifts in market sentiment and risk. Image: Real Investment Advice

U.S. Corporate Bond Spreads

U.S. Corporate Bond Spreads U.S. corporate bond spreads are currently at historically tight levels, suggesting potential bubble-like conditions. While a major correction is not guaranteed, several factors indicate rising risks in the first half of 2025. Image: Alpine Macro

U.S. Corporate Income Tax Rate

U.S. Corporate Income Tax Rate The trend of declining effective tax rates among S&P 500 companies reflects broader economic shifts and policy decisions that have shaped the landscape of corporate taxation in the United States. Image: Goldman Sachs Global Investment Research

Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks

Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients are significantly increasing stock buybacks, defying recession fears and indicating a positive market outlook, suggesting these companies expect ongoing growth and stability in the future. Image: BofA Securities

Corporate Clients – Buybacks (4-Week Average)

Corporate Clients – Buybacks (4-Week Average) Strong buyback activity from BofA’s corporate clients, exceeding historical averages, is a positive sign for investors, reflecting confidence in future growth prospects. Image: BofA Securities

Corporate Client Buybacks as a % of S&P 500 Market Capitalization

Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities

Share of U.S. Corporate Profits from Foreign Markets

Share of U.S. Corporate Profits from Foreign Markets Foreign markets, including emerging markets, significantly contribute to the profits of U.S. corporations. Specifically, they account for 16% of U.S. corporate profits, with emerging markets making up 4% of these profits. Image: Goldman Sachs Global Investment Research