Hope that the stabilization of Fannie and Freddie would help other banks went unfulfilled.
It was a rough summer for the market. Mounting subprime mortgage defaults led to a crisis in debt markets. The paralysis in debt markets forced many investors to sell stocks and other assets to raise cash or shed risk.
In our September 2008 Bond Market Commentary, Morningstar Indexes' Eric Jacobson provides insight into the bond market's performance, and offers a reminder that even when most everything else is looking gloomy, there's some corner of the market thriving.
Sanjay Arya is director of Morningstar Indexes.