U.S. High Yield Bonds and Leverage Loans

U.S. High Yield Bonds and Leverage Loans The pace of downgrades has accelerated in the U.S. leveraged loan market, despite declining interest rates. Image: Goldman Sachs Global Investment Research

S&P 500 Total Return and U.S. High Yield/High Grade

S&P 500 Total Return and U.S. High Yield/High Grade Usually, flight to quality in credit markets is rarely a good sign for equities, but ECB QE, Fed easing and repo operations should be positive. Image: BofA Merrill Lynch

S&P 500 and Bloomberg Barclays U.S. Corporate High Yield Index

S&P 500 and Bloomberg Barclays U.S. Corporate High Yield Index The chart shows that the S&P 500 and high-yield bonds tend to go up and down together. Keep in mind that historically, the correlation between the S&P 500 and the Bloomberg Barclays U.S. Corporate High Yield Index is 91.7%. Image: First Pacific Advisors, LP

U.S. High Yield

U.S. High Yield Credit spreads are fine. Could the market go wrong by predicting significant interest rate cuts? Image: Fidelity Investments

Global High Yield Bond Spreads Since 2017

Global High Yield Bond Spreads Since 2017 High yield bond spreads have widened recently (difference in yields between high yield bonds and comparative government bonds). Image: BlackRock

High-Yield Bond Returns

High-Yield Bond Returns Year-to-date, Caa rated high-yield bond returns have lagged those with higher average credit ratings. Image: Charles Schwab