U.S. Energy Stocks vs. U.S. High Yield Energy Bonds
U.S. Energy Stocks vs. U.S. High Yield Energy Bonds U.S. energy stocks are historically cheap. Will the gap be closed? Image: BofA Global Investment Strategy
U.S. Corporate High Yield Bond Spreads
U.S. Corporate High Yield Bond Spreads A breakthrough in the 200-day moving average has historically been bullish for high yield. Image: Morgan Stanley Wealth Management
U.S. Dollar Index and Foreign Ownership Share in the U.S. Corporate Bond Market
U.S. Dollar Index and Foreign Ownership Share in the U.S. Corporate Bond Market Chart suggesting that the relationship is virtually non-existent between the U.S. dollar and net foreign purchases of U.S. corporate bonds. Image: Goldman Sachs Global Investment Research
Corporate Bonds – Share of Market Value in Bloomberg Barclays USD IG (AAA, AA, A, BBB)
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
Quarterly Dollar Notional Amounts of Bonds Downgraded from IG to HY
Quarterly Dollar Notional Amounts of Bonds Downgraded from IG to HY The pace of rating downgrades has accelerated markedly in recent months. Image: Goldman Sachs Global Investment Research
Real Yield on U.S. Corporate Bond IG & HY vs. Equity Earnings Yield
Real Yield on U.S. Corporate Bond IG & HY vs. Equity Earnings Yield Real yields on U.S. corporate bonds (IG & HY) exceed equity earnings yield Image: Gavekal, Macrobond
Duration in Investment Grade and High Yield Corporate Bond Indices
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
Corporate Bonds: IG Downgrade to HY and BBB Share of U.S. IG Market
Corporate Bonds: IG Downgrade to HY and BBB Share of U.S. IG Market This chart highlights the resilience of BBB-rated bonds. BofA believes that there is little risk that IG ratings will fall to junk status in the next recession. Image: BofA Global Research
S&P 500 Equal Weight Index vs. S&P 500 (Price Relative) and U.S. 30-Year Bond
S&P 500 Equal Weight Index vs. S&P 500 (Price Relative) and U.S. 30-Year Bond Equity markets suggest new lows in bond yields. Image: BofA Global Investment Strategy
Stocks, Bonds, Foreign Exchange and Commodities Outperformance
Stocks, Bonds, Foreign Exchange and Commodities Outperformance Stocks, bonds, FX and commodities outperformed in 2019. Image: Deutsche Bank Global Research