Search Results for: investment grade

Investment Grade Bond Maturity Wall Should investors be concerned about the IG bond maturity wall? Image: Goldman Sachs Global Investment Research

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

Liquidity Premium: Investment Grade vs. High Yield Bonds The chart shows that the premium provided by illiquid IG and HY bonds has been drifting wider. Image: Goldman Sachs Global Investment Research

U.S. High-Yield vs. Investment-Grade and MSCI ACWI ex-US (Leading Indicator) This chart suggests that the ratio of high-yield to investment-grade bond performance is a leading indicator for stocks. Image: BofA Global Investment Strategy

U.S. Share of Global Investment-Grade Fixed-Income Yield With negative yields in Europe and Japan, the U.S. now accounts for 95% of the positive investment-grade yield. Image: Legg Mason

S&P 500 Total Return Index and U.S. High Yield/High Grade Chart suggesting a bullish market that is getting stretched and vulnerable. Image: BofA Global Investment Strategy

Deflation Assets vs. Inflation Assets The leadership is still deflationary, and the laggards are inflationary. Deflation Assets: government bonds, U.S. investment grade, S&P 500, U.S. consumer discretionary, growth and US high yield.Inflation Assets: TIPS, EAFE, U.S. banks, value and cash. Image: BofA Global Investment Strategy

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

The Performance of “Deflation Assets” vs. “Inflation Assets” Interesting chart showing the performance of “Deflation Asset” vs. “Inflation Assets” since 1960. “Deflation Assets”: Government Bonds, US Investment Grade, S&P 500, US Consumer Discretionary, Growth and US High Yield “Inflation Assets”: TIPS, EAFE, US Banks, Value and Cash Image: BofA Merrill Lynch

The U.S. Corporate Bond Debt Rated ‘BBB’ Exceeds $3 trillion The U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. That’s 53% of investment-grade bonds in the United States. Any drop in the credit ratings could amplify the next recession: many investment grade investors own BBB-rated bonds, but are not allowed to hold junk-rated bonds.…