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Quarter-End Insights

Credit Market Insights: Flattening Yield Curve Impacts Performance

Fixed income performance was mixed as the yield curve compressed to its flattest level since before the financial crisis.

  • Long-duration fixed-income outperformed in the fourth quarter as the yield curve flattened.
  • Corporate credit spreads are at, or near, multiyear lows.
  • Greater than 3% economic growth momentum continues into the fourth quarter.
  • Tax reform should bolster credit quality, but the impact will be idiosyncratic.