No dramatic news from Jackson Hole.
The flight to the safety of U.S. Treasury bonds pushed interest rates lower.
Underlying market action revealed the depth of demand for risk assets.
Risk assets continued to trend higher last week as the S&P 500 hit an all-time high, corporate credit spreads tightened to multiyear lows, and volatility reached a new low.
Asset volatility closing in on new low.
Fixed-income indexes performed well during the second quarter.
Credit spreads remain tight as volatility declines to near-record lows.
Volatility remained especially muted, the news flow was unusually uneventful, and there were no new issues of any significance priced.
Volatility remains muted in corporate bond market; yield curve continues to flatten.
Volatility in the secondary corporate bond market remained low and corporate bond credit spreads hardly budged.
Issuers were looking to complete new issue debt offerings before the beginning of summer.
Trading volume in the corporate bond markets remained muted.
The lack of surprises in the first-quarter earnings season helped.
While equity markets hit all-time highs, the corporate bond market was mixed last week.
Most economists had predicted a much larger increase in consumer spending.
New issue market beginning to awaken; moderate weekly outflows in high yield.
New issue market taking a short breather; investors return to high-yield sector.
A fed funds rate increase did not prevent the indexes from rising.
Both the investment-grade and high-yield indexes are trading much tighter than their long-term historical averages.
Futures market is already pricing in additional Fed rate hikes.
Futures market prices in Fed rate hike as foregone conclusion.
Probability of March interest rate hike soars.
New issue volume and secondary market trading volume slow to normalized levels.
Corporate Credit Spreads Grind Tighter
Corporate Bond Market Continues to Digest Deluge of New Issuance from January.
Also, our takeaways from the 2017 private placement conference.
They broke through the tight end of their narrow range last week.
Global inflation is showing signs of life.
The tone of corporate bond market ended the week on a positive note as earnings season swung into gear.
Negative interest rates take their toll.
Global interest rates continued to climb as investors priced in expectations that the global economy is entering a reflationary environment.
Investors remained attracted to corporate bonds and corporate credit spreads continued to compress.
Meanwhile, risk-free markets have suffered.
But high-yield buyers were unwilling to chase credit spreads.
The bond and equity markets last week continued to follow the same trend since the election.
This week's activity may provide greater insight into the direction of the market.
Risk assets took it on the chin last week as corporate credit spreads widened out, stocks fell, and commodity prices declined.
Market Data and Insights
Energy and basic materials have been some of the best performing sectors year to date.
Market Data and Insights
The amount that credit spreads have tightened has offset the amount that interest rates have risen.