Search Results for: high yield

BB HY Monthly Total Returns U.S. BB rated high yield corporate bonds have dropped sharply in January. Image: BofA Global Investment Strategy

Monthly Net Rating Change The credit ratings upgrade cycle continued in September, which is good news for high yield investors. Image: BofA Global Research

Deflation Assets vs. Inflation Assets Is the 40-year bull market in bonds over? 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

Year to Date Fund Flows Many investors placed their money in US money market funds and high yield ETFs. Image: BofA Global Research

Inflation Assets vs. Deflation Assets The leadership remains deflationary, and the laggards remain 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

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

Valuation Percentile for Equity, Credit and Bond Valuations matter more over the medium term than in the moment. In years like 2025, robust growth let markets climb anyway, powered by rising profits despite high price tags. Image: Goldman Sachs Global Investment Research

U.S. Equity Volatility vs. Credit Volatility Credit markets are calm, with volatility running below its long-term average, but equity volatility tells a different story, pointing to a more anxious tone in stocks. Image: Fundstrat Global Advisors, LLC

S&P 500 Index The current rally is underpinned by solid employment data and improving trade sentiment. If the S&P 500 can sustain levels above 6,000, the only major resistance ahead is the all-time high near 6,150. Image: Bloomberg

Probability of U.S. Recession As Priced Across Asset Classes The S&P 500 is pricing in about a 25% chance of a recession, which is lower than signals from copper prices or the yield curve, but higher than the recession probabilities implied by global equities or high-yield credit markets. Analysts often use the current percentage change…

Fed Balance Sheet The ongoing reduction of the Fed’s balance sheet is expected to reduce bank reserves. This reduction may lead to higher inflation, increased real yields, and a steeper yield curve. Image: TS Lombard