Corporate Credit Spreads Largely Unchanged as Supply Equals Demand
Although the stock market eked out a gain last week, the S&P 500 is muddling along near the middle of its year-to-date trading range.
Although the stock market eked out a gain last week, the S&P 500 is muddling along near the middle of its year-to-date trading range. Corporate credit spreads in the investment-grade market ended the week unchanged. In the high-yield market, credit spreads tightened slightly but lagged far behind their prior-week performance. The average spread of the Morningstar Corporate Bond Index ended the week at +109, and the average spread of the BofA Merrill Lynch High Yield Master Index tightened 5 basis points to +333 basis points. At this level, high-yield credit spreads are near the low end of the 90-basis-point range that they have traded in since the beginning of 2017. While credit spreads in the high-yield market are near the lows they hit in January, credit spreads in the investment-grade market remain well wide of the levels they hit earlier this year.