U.S. High Yield Corporate Bond Spreads While tight high-yield credit spreads generally reflect robust market confidence, they can also serve as a warning of excessive investor complacency. Given this dual nature, it’s crucial to monitor credit spreads closely. Image: Topdown Charts
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 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 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) 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
Spread Between BBB-Rated Corporate Bond Yield and 90-Day U.S. Treasury Bill Yield The recent increase in the spread between IG credit yield and cash yield marks a significant shift from a 43-year low. Should investors favor U.S. Treasury bills over IG bonds? Image: BofA Global Investment Strategy
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
U.S. Households Allocation to Corporate Equities as a % of Financial Assets Historically, periods of high household equity allocation have been followed by lower market returns, suggesting that current trends may signal potential risks for future investors. Image: MarketDesk Research
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
U.S. Investement Grade Corporate Bond Spreads Will U.S. Investment Grade corporate bond spreads remain unchanged for an extended period? Image: BofA Global Investment Strategy
Return – U.S. Corporate Bonds Corporate bonds have produced low annualized returns over the past 10 years. Image: BofA Global Investment Strategy