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.…
Share of Market Value in Bloomberg Barclays USD IG Since 1990, the amount of BBB-rated bonds has doubled. This is only one step away from junk bonds. Keep in mind that many investment grade investors own BBB-rated bonds, but they are not allowed to hold junk-rated bonds. So, any drop in the credit ratings could…
Leveraged loans pose risks as corporate debt increases A leveraged loan is debt issued by a company that has below investment grade credit ratings and a considerable amount of debt with high interest rates. In this video, Brian Cheung of Yahoo Finance, explains why leveraged loans pose risks as corporate debt increases.
Median Annual S&P 500 Total Return Based on Nominal 10-Year U.S. Treasury Yield There is no consistently clear or stable relationship between bond yields and equity returns. Their correlation is dynamic and shaped by various economic factors, including inflation, interest rates, and credit risk. Image: Goldman Sachs Global Investment Research
IG Bond Flows Investment-grade corporate bond funds continue to attract investors, resulting in the biggest 5-week inflow. Image: BofA Global Investment Strategy
China GDP Growth Consensus Estimates GDP upgrades are likely to spur interest in China’s markets, encouraging asset allocation towards sectors that align with the country’s economic transformation. Image: BofA Global Investment Strategy
Cumulative Bond Flows Government bonds and investment-grade (IG) corporate bonds have experienced substantial inflows over the last 12 months. Image: Deutsche Bank Asset Allocation
Cumulative Annual Flows to IG Bond Funds Investment-Grade (IG) corporate bond funds have experienced a surge in investor interest and confidence this year, resulting in robust inflows into this asset class. Image: BofA Global Investment Strategy
IG and HY Bond Fund Flows It is common for investors to prefer investment-grade (IG) bonds over high-yield (HY) bonds when seeking lower-risk investments. Image: BofA Global Investment Strategy
USD IG Real Yields USD investment-grade real yields are extremely low. Image: Goldman Sachs Global Investment Research
Utilities Dividend Yield Less 10-Year U.S. Treasury Yield Goldman Sachs upgraded utilities to outperform, as the utilities dividend yield is relatively high compared to the 10-year U.S. Treasury yield. Image: Goldman Sachs Global Investment Research