Net Issuance – Agency MBS, IG Corporate Credit, and U.S. Treasury Bills and Coupons March and April saw record paces of IG issuance. YTD total of net supply in IG is above last year’s number. Image: Goldman Sachs Global Investment Research
U.S. and Euro Area Composition of Corporate Credit Great chart showing that the U.S. is a market-based financial system, while the Euro Area is a bank-based system with 80% of bank loans. Image: Deutsche Bank Global Research
China Credit Impulse and Corporate Financing Index China credit impulse is weakening as Beijing orders banks to limit loan growth for rest of the year. Image: Alpine Macro
Credit Spreads on High-Quality U.S. Corporates Credit spreads on high-quality U.S. corporates are widening and are flashing a warning sign for markets. Image: Gavekal, Macrobond
Real Rates – U.S. Agg. Corporate Avg. Option-Adjusted Spread and 10-Year U.S. Real Yield Rising U.S. real rates could lead to wider credit spreads. Image: Morgan Stanley Wealth Management
S&P 500 Index and U.S. Corporate High Yield Index Is high yield credit a bearish sign for the S&P 500? Image: Morgan Stanley Wealth Management
U.S. High Yield Corporate Bond Spreads Credit spreads in U.S. high-yield bonds have collapsed. Can high yield spreads only increase from current levels? Image: Topdown Charts
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
U.S. Corporate Bond Ownership More than 25% of U.S. corporate bonds are held by insurance companies. Many investment grade investors are not allowed to hold junk-rated bonds. Any drop in the credit ratings could amplify the next recession. Image: NBF Economics and Strategy
U.S. Consumer vs. Corporate Debt This chart puts interest rates on non-prime consumer credit accounts into perspective vs. CCC corporate bonds. Image: Goldman Sachs Global Investment Research