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Credit Insights

Bond Market Activity Returns to Normal

Activity across the fixed-income markets was generally back to normal after a wild ride in early February.

Although credit spreads in the corporate bond markets widened slightly at the end of last week, activity across the fixed-income markets was generally back to normal after a wild ride in early February. Changes in interest rates and credit spreads were muted, and the decrease in volatility led to a reopening of the window to the new issue marketplace. The average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) widened 2 basis points to end the week at +100. In the high-yield market, the average spread of the BofA Merrill Lynch High Yield Master Index also widened slightly, by 8 basis points to +358.

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