Corporate Bond Markets Rebound in New Year
After the holidays, investors put cash to work.
Risk assets surged higher last week as investors returned from holiday vacations and put cash to work. In the equity markets, indexes rose across both the developed and emerging markets, with the S&P 500 rising 2.52%. Among the industrial commodities, oil increased by over $3 per barrel and copper rose by $0.02 per pound. In the corporate bond market, the average spread of the Morningstar Corporate Bond Index tightened 8 basis points to +151 and the average credit spread of the ICE BofAML High Yield Master Index gapped 50 basis points tighter to +455.