Tag Archives: kevin horan

Eurozone Corporates Gets an ECB Kickstart

The impact of the ECB announcement on March 10, 2016, continues to play out in the bond markets.  The governing council decided to establish a new program (the Corporate Sector Purchase Program, or CSPP), which will purchase investment-grade, euro-denominated bonds issued by non-bank corporations established in the eurozone.  The goal of the action is to Read more […]

The Canadian Corporate Comeback

Yields of Canadian corporate investment-grade and high-yield bonds have been trending lower (up in price) since the beginning of March 2016.  Year-to-date, the S&P Canada Investment Grade Corporate Bond Index returned 1.59% while the S&P Canada High Yield Corporate Bond Index returned 4.54% as of April 30, 2016. The beginning of April saw yield increase Read more […]

Great Performance by High Yield, One Time or Early Signs?

As with the weather for the northern hemisphere, the U.S. high-yield market seems to be making a comeback.  The 0.54% return in February for the S&P U.S. Issued High Yield Corporate Bond Index appears to be the green shoot of return for high-yield bonds.  March 2016 followed the prior month’s gain with a blossom of Read more […]

Indexing the Brexit

The central bank of England has said that the European Union referendum in June 2016 is the most significant near-term domestic risk to the country’s financial stability.  Because of its separate currency, Britain is one of the countries that could disassociate itself most easily from the EU.  It is a long time until June, and Read more […]

Bond Returns Barely Positive in February

The last few days of February had many wondering whether corporate bond indices would end up closing positive or negative for the month.  The majority of indices closed up for February, but not by much. Higher-quality corporate bonds, as measured by the S&P 500® Bond Index, posted a 0.83% total return for February and returned Read more […]

The True North Strong and Free! (But Not Free From Debt)

Lyrics to the Canadian national anthem, “O Canada,” state “The true north strong and free!”  Like in the U.S and many other countries, government and corporate debt has become a big issue in Canada. The Canadian overnight rate stands at 0.5% and will most likely remain unchanged or decrease even more.  Central Bank Governor Stephen Read more […]

Where Are Spreads?

In case you have had  your head down focusing on other things, and not taken a moment to look at what  spreads have been doing, the following chart will provide you with  a snapshot as of February 23, 2016.  Key takeaways include: Looking at commodities, Oil, as measured by WTI futures contracts, has bounced from Read more […]

Will History Repeat Itself in Feb. 2016?

The year 2016 appears to have gotten off to a similar start to the beginning of 2015.  The S&P 500® Bond Index has returned 0.92% as of Feb. 8, 2016, while in 2015 the index was up 1.57% as of Feb. 8, 2015.  Maybe the month of February will end up being more similar than Read more […]

Risk Off, Yields Move Lower

Global yields are lower year-to-date in all developed countries except Hong Kong, as measured by the S&P Global Developed Sovereign Bond Index. Weak economic growth, low inflation, and concern over the situation in the Middle East have led many to invest in safer assets. The U.S. market took note of the slowing growth, both domestically Read more […]

Oil’s Viscosity

Oil’s Viscosity It goes without saying that if your car’s engine (or any other combustible engine) does not have the lubrication effect of oil then the friction of movement will lead to overheating and engine damage. Currently oil is having its own effect on markets as low prices are leading to concerns of lower future Read more […]