Tag Archives: corporate bonds

Bridging the Volatility Gap between IG and HY

The goal of the S&P U.S. High Yield Low Volatility Corporate Bond Index is to construct a high-yield bond portfolio with low credit risk and low return volatility by applying a low volatility factor.  Does the index methodology truly deliver the effect of reducing volatility?  The back-tested results of the 17-year period ending Feb. 28, Read more […]

Year in Review: 2016 Asset Class Performance

The high-yield corporate bond segment, as measured by the S&P U.S. High Yield Corporate Bond Index, was the top-performing asset class for 2016, posting a total return of 17.2%.  Despite a rather tumultuous first quarter, 2016 finished with a clear “risk-on” sentiment as evidenced by the asset classes that topped the list. On Feb. 11, Read more […]

Rieger Report: Bond Market Malformation Worsens

As we approach August, the U.S. bond markets have extended their malformed shape despite another round of chatter about the possibility of a Fed hike, this time towards year end.  Subsequent to the June 2nd, 2016 blog Bond Market Malformation, Trouble Ahead? bond yields have compressed further. Demand continues to outstrip the supply of U.S. investment grade Read more […]

Rieger Report: U.S. Bond Safety Valve for Brexit Hangover

Thursday’s Brexit vote and subsequent market reactions have helped push U.S. bonds higher as investors continue to seek shelter from volatility and the uncertainty of what the future holds for the global economy. While the S&P 500 Index has seen a decline of over 2.7% in June, the 10 year U.S. Treasury Bond has returned over Read more […]

Safe Spread Alternative: The S&P 500® Corporate Bond Index

The May 2016 IIF Portfolio Allocation Trends report confirms the generally defensive tone among market participants, with investors balancing between higher quality and higher yield. The S&P 500 Corporate Bond Index is the corporate bond counterpart to the market bellwether, the S&P 500 equity index. With an average option-adjusted spread (OAS) of approximately 425 bps, Read more […]

Defaults Are on the Rise

The March rebalancing of the S&P U.S. Distressed High Yield Corporate Bond Index saw another increase in the number of qualifying constituents.  This marks the eighth increase of this kind in the last nine months.  The index, which is designed to measure securities with an option-adjusted spread greater than or equal to 1,000 bps, is Read more […]

Is Oil’s Spill Turning the Credit Cycle?

While the slumping price of oil is bearing the brunt of the current volatility in the markets these days, there are other signs that indicate more widespread shifts in the credit cycle.  High-yield credit default spreads have widened, as shown by both the S&P/ISDA CDS U.S. High Yield BB and the S&P/ISDA CDS U.S. High Read more […]

A Comparison of Two Corporate Bond Markets

The possibility of interest rates remaining low means investors will continue to search for yield while also looking to diversify market exposures.  Below we offer a snapshot of two corporate bond landscapes: the U.S. corporate bond market and the Chinese corporate bond market, which has expanded rapidly in recent years. Size Tracked by the S&P Read more […]

Corporate Bond Funds: Weighing performance scenarios

Investors are taught to diversify their portfolio by investing in several different asset classes with different risks and exposures.  In today’s low rate environment, the investment grade corporate bond market in the US and abroad offers a way to pick up additional yield and diversification, while maintaining a relatively low level of risk.  I weighed Read more […]