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Credit Insights

Strong Investor Demand for Corporate Bonds Drives Credit Spreads Tighter

Strong investor demand, especially from overseas, drove corporate credit spreads tighter across the board last week. In the investment-grade market, the average spread of the Morningstar Corporate Bond Index tightened by 4 basis points to +111, its tightest level since October 2018. In the high-yield market, the ICE BofAML High Yield Master II Index tightened 18 basis points to +389.