- While long-term global interest rates have generally been rising, the rate of increase picked up substantially in the U.S. following the U.S. presidential election.
- Strong demand for corporate bonds has helped push credit spreads tighter across all sectors and the average spread of the indexes are now much tighter than their long-term averages.
- Though most fixed-income sectors have given back many of the gains they generated earlier this year, the high-yield sector had been able to buck the downward trend.
- After years of downgrades outpacing upgrades, we upgraded the same number of companies as we downgraded in the fourth quarter.
To view this article, become a Morningstar Basic member.
Already a member? Sign in.