Sentences with phrase «investment grade spreads»

US investment grade spreads stand 37 bps tighter over the last 12 months and are 67 bps through historic averages.

Canadian investment grade spreads tightened 28 bps over the last 12 months and are now 13 bps through long term averages.

This event illustrates how central banks have distorted the credit markets and allowed inferior borrowers access credit at investment grade spreads.

Not exact matches

It said in a note Friday: «With the recent back - up in both IG [investment grade] and HY [high - yield] spreads to their respective 3.5 - year wides, a discussion has emerged about whether the market is sensing the next default cycle around the corner or is simply «overreacting» to some exogenous but ultimately irrelevant events.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

Finally, it was a banner year for credit, with spreads narrowing across investment grade, high yield and emerging markets.

Since its 2014 high on December 29, the S&P 500 Index has gained 1.5 % (not including a fraction of a percent in dividends), the Dow Industrial Average has gained 1.3 %, the Dow Transportation Average is down -5.8 %, the Dow Utilities Average is down -8.9 %, market breadth has churned sideways, and investment grade corporate spreads are flat (though junk spreads have come in about two - tenths of a percent).

Last week, spreads on the Morningstar Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higher.

At the beginning of 2016, U.S. high yield spreads were among the widest versus investment grade since the financial crisis.

Investment grade and emerging market debt spreads are right in line with the historical trend line since 2006.

Investment grade, high yield and emerging market spreads are currently trading relatively rich.

More broadly, he says that while corporate credit may benefit from aspects of tax reform (i.e., better earnings growth from the corporate tax cuts, modestly lower investment grade supply as repatriation becomes reality), he does not see tax cuts at this point in the cycle as a bullish driver of credit spreads.

The average bid / ask spread was 29 cents (per $ 100 par value) for both investment - grade and high - yield bonds, and the average daily trading volume was $ 2.2 million ($ 2.5 million) for investment - grade (high - yield) corporate bonds.

That large bid / ask spread is equivalent to almost two years of the spread advantage of illiquid (as measured by bid / ask spread) investment - grade bonds, creating a large hurdle for providing a liquidity premium.

There was a weaker correlation between the ability to trade (daily trading volume, issue size and frequency of zero - trading days) and credit spreads for both investment - grade and high - yield markets.

And in CMBS land, spreads on investment - grade triple - B bonds surged by 158 basis points between May and June.

With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.

For example, by comparing a group of corporate bonds (like investment grade corporate bonds) vs. treasuries, you get a picture of where the average investment grade bond credit spread currently stands.

The hybrid loan's pricing is also significantly jucier than typical investment - grade spreads of 143.7 bp for BBB - loans, the data shows.

But even within the past few months, spreads between investment - grade corporates and Treasuries remain above historical averages.

The average bid - offer spread for trading an investment grade corporate bond, for example, is 50 basis points.

CNH is now rated investment grade by two of the three ratings agencies, making its bonds eligible for investment - grade indexes, which will lead to lower spreads.

Investment grade and emerging market debt spreads are right in line with the historical trend line since 2006.

While there has been a spread between investment grade bonds and Illinois G.O.s the muni market kept the yields for these bonds relatively consistent up until now.

Accordingly, we are migrating some of our duration exposures to the shorter part of the curve and layering in partially (or fully) rate - hedged investment - grade and municipal bonds out the curve to capture higher - quality spread.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

High yield municipal bond yields and relative spreads to investment grade munis have moved to lows not seen since 2008.

The yield spread between high yield and investment grade municipal bonds is now at 265bps or 2.65 % (on March 15, 2012 the spread was 351bps).

The average bid - offer spread for trading an investment grade corporate bond, for example, is 50 basis points.

Take for example, these graphs of lower investment grade, and junk spreads.

US and CAD investment grade credit spreads, the difference in yield between corporates and Canadas, tightened by.3 % and US high yield bonds tightened by 1 %.

What's more, just like the September - October pullback of 2014, market internals have been deteriorating at a noteworthy pace, whether one is looking at waning breadth of bullish stock participation or widening credit spreads between investment grade and higher yielding corporates / junk corporates.

Credit spreads can continue to narrow (supported by U.S. tax reform, which might result in more limited high yield and investment grade supply), but we don't anticipate a repeat of the Great Narrowing of 2017.

That large bid / ask spread is equivalent to almost two years of the spread advantage of illiquid (as measured by bid / ask spread) investment - grade bonds, creating a large hurdle for providing a liquidity premium.

There was a weaker correlation between the ability to trade (daily trading volume, issue size and frequency of zero - trading days) and credit spreads for both investment - grade and high - yield markets.

Measures of bid / ask spread and price impact (the cost of trading) were positively correlated, reflecting the direct costs of trading both in investment - grade and high - yield bonds.

In the next few blogs, we will detail our approach to and back - tested results of employing credit spread (value) and volatility as factors in order to systematically construct a portfolio of U.S. investment - grade corporate bonds.

The S&P 500 High Yield Corporate Bond Index presents a unique credit alternative to bridge the gap between existing investment grade, which offers spread levels of around 150 bps, and high - yield corporate credit, which offers north of 600 bps in spread.

Investment grade, high yield and emerging market spreads are currently trading relatively rich.

As of Feb. 5, 2018, investment - grade spreads had tightened 6 bps and were more than 110 bps tighter compared with February 2016, as measured by the S&P 500 Investment Grade Corporate Binvestment - grade spreads had tightened 6 bps and were more than 110 bps tighter compared with February 2016, as measured by the S&P 500 Investment Grade Corporate BInvestment Grade Corporate Bond Index.

The OAS (Option Adjusted Spread) of the investment grade corporate rating sub-indices are tighter: AAA -LRB--6 bps), AA -LRB--2 bps), A -LRB--3 bps) and BBB -LRB--5 bps) while high yield's BB and B are flat and the CCC & below are 22 bps wider.

Finally, it was a banner year for credit, with spreads narrowing across investment grade, high yield and emerging markets.

Since the financial crisis, investment grade corporate bond indexes have reached record highs, 1 and credit spreads have tightened significantly,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.

Investment grade and high yield bond spreads are at record levels.

The spread between utility dividend yields and the yield from a basket of long - dated investment - grade debt is fairly small.

Investment grade credit spreads in CDS gapped out 4.5 bp on the IBOXX 7 deal.

The market turmoil in the wake of the subprime mortgage crisis hit CPDOs particularly hard as investment - grade spreads widened sharply even in the absence of defaults.

Investment grade corporate bonds possess an average yield spread of 2.2 % to Treasuries, which is above the historical average of 1.5 % and notably greater than MBS spreads.

The increase in Treasury yields mirrored the returns of investment grade and BBB crossover issues, which are sensitive to movement in interest rates, while lower rated CCC - rated bonds had slightly positive returns (primarily due to 800 bps of Treasury spread insulating their sensitivity to interest rate movements).

Also, spread volatility is more pronounced in below - investment - grade markets.