Corporations benefit in new issue market as demand drives cheaper financing.
More strategic M&A: Expedia to acquire Orbitz.
Strategic M&A heats up while large LBOs remain cool.
Fixed-income returns were unusually strong as the ECB announced a stimulus program, uncertainty followed Greek elections, and growth slowed in China.
Looking at the impact of Europe's quantitative easing program on corporate bond markets.
New issue market subdued; JPMorgan's issue attractive whereas Ecolab looked expensive.
Fixed-income returns in 2014 primarily driven by declining interest rates.
With falling interest rates behind us, we expect the high-yield market will outperform the investment-grade market, even if we see some energy-sector defaults.
The boost from declining rates may be over, but macroeconomic fundamentals in the U.S. should generally be supportive of credit risk.
Retailers' bonds outperform while energy bonds continue to underperform.
Will the Fed finally eliminate 'considerable time'?
New issue market reaches new volume records
Declining rates have boosted investment-grade securities, but the energy sector's woes have held back high-yield bonds.
China cuts interest rates and ECB pledges to ramp up its stimulus programs.
GDP and inflation pick up in euro area, which may keep ECB monetary policy on hold.
Economic metrics keep Fed on autopilot; ECB intimates more QE is coming.
Although spreads could grind a bit tighter in the near term, rising interest rates will be a headwind.
GDP grows 3.5%, but is likely to moderate in the fourth quarter.
Tech investors burned by earnings disappointments and recapitalization.
Only best-known issuers with strong balance sheets dared tap the new issue market.
While marriages are increasing in the health-care sector, conscious uncoupling increases in the technology sector.
But market rebound isn't enough to offset losses experienced earlier in the week.
Investment-grade bonds will likely continue to struggle as rates rise, but high-yield bonds should hold their value better.
Widening high-yield spreads will start to attract investors.
With interest rates poised to rise further and credit spreads near their tightest levels since the end of the 2008–09 credit crisis, we expect rising rates to largely offset the yield that investment-grade corporate bonds currently offer.
New Best Idea highlighted, but otherwise, value hard to find.
Credit spreads were unable to hold their ground last week.
Credit spreads holding steady despite new issue supply.
Although investment-grade bonds have performed better recently, we expect high-yield bonds to hold their value better in the medium term as rates rise and the economy continues to grow.
Economic indicators released last week indicate that US economy is continuing to expand at a moderate pace.
Going forward, the corporate bond market will be much more closely tied to Treasury-bond returns than in the past, says Morningstar's Dave Sekera.
As credit spreads have tightened on a nearly continuous trend over the past year, they are becoming richly valued relative to their historical average.
Corporate credit spreads are at very tight levels but have little room to further narrow the gap.
The best 2014 outcome investors can hope for regarding investment-grade corporate bonds is the current yield.
Due to the Fed taper and expected rise in interest rates, corporate-bond investments likely have little room to grow for the remainder of the year.
New issue supply fell well short of demand to put money to work last week.
This brewer offers bond investors good value for their money, with its structural competitive advantages that provide a strong financial foundation for the long term.
Corporate credit spreads are fairly valued--albeit at the tight end of the range that we view as fairly valued.
The buy-the-dip crowd was in full force as corporate spreads tightened, but the dips have become increasingly shallow and almost imperceptible on a long-term chart.
The market seems to believe that any potential contagion from the situation in the Ukraine or economic weakness in China will be extremely limited in the United States.
Strong job growth sent Treasury rates upward, but corporate credit spreads held steady on a flood of new issues.
The corporate bond index will struggle to return more than the 2% it already has this year given the likelihood of rising long-term rates and today's historically low credit spreads.
The impact from the emerging-markets disruption barely dented the corporate bond market.
Headline payrolls numbers disappointed last week, but the bond markets rallied on underlying private-sector strength
At this point, the instability appears to be contained in relatively small geographic regions.
We continue to view credit spreads as fairly valued, albeit at the tight end of the range that we see as appropriate, given our economic outlook.
Corporate bond trading activity was relatively light as many investors decided to wait for the calendar to build this week as reporting season ramps up.
It was back to the grind last week as traders and portfolio managers returned to their desks after the holidays for the first full trading week of the year.