Energy and Puerto Rico remain the sectors to watch as they continue to be drags on the bond markets.
Energy making this sector the lead ‘dog’ in performance so far in 2016. The S&P 500 Energy Corporate Bond Index is down over 4.8% year-to-date causing significant damage to the corporate bond markets as the index tracks over $289billion in par amount of bonds.
Table 1: Select bond indices, their yields and returns (YTD)
Puerto Rico municipal bonds have enjoyed a positive bounce in 2016 however the general obligation bonds are still a small anchor on performance of the high yield municipal bond market as the S&P Municipal Bond Puerto Rico General Obligation Index is down over 2% year-to-date. This segment is a small anchor as the index tracks just over $11billion in par amount of general obligation bonds.The posts on this blog are opinions, not advice. Please read our Disclaimers.