Tag Archives: Leverage Loan

Bond Yields Move Higher Ahead of Any Fed Rate Decision

The yields of U.S. Treasuries rose 27 basis points last week, as the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Index jumped from 2.13% to 2.40% to close the week (as of June 5, 2015).  The return of the index is down 2.43% for the month and has returned -0.86% YTD. Following the Read more […]

The Fed’s Rate Increase Is Looking Like a Game of Kick the Can

Continued lackluster U.S. economic activity right up until today’s slower personal consumption expenditures (PCE) report may have pushed rates lower during the last week of the month and into June’s start.  The yield of the S&P U.S. Investment Grade Corporate Bond Index moved lower by 8 bps during the last week of the month to Read more […]

It’s Not So Much the Current Weight, But the Weight That’s Put On

In addition to liquidity concerns in the credit markets, the rising amounts of debt have become a topic for discussion. The S&P U.S. Issued Investment Grade Corporate Bond Index has seen its market value actually decline from the beginning of the year’s USD 4.126 trillion to  USD 4.077 trillion as of April 30, 2015. Although Read more […]

Why Might Actively Managed Bond Funds Underperform their Benchmarks?

Over the long term, actively managed bond funds have not outperformed their benchmarks  as evident in the SPIVA U.S. Scorecard for year-end 2014.  In a recent blog post, I analyzed the performance data of this scorecard.  Many wonder what might be causing the results to be one-sided.  For example, in a recent post on Practical Stock Read more […]

Actively Managed Bond Funds Should Outperform Their Benchmarks, Right?

The facts are that over the long term actively managed bond funds don’t outperform their benchmark and in the short term, only some asset classes outperformed their benchmarks. This is all counter intuitive.  Actively managed bond funds have the people, data and tools for credit selection, can adjust for term structure and duration risk and Read more […]

February Made Bonds Shiver, While Energy Kept High Yield Warm

Investment-grade corporate yields widened by 15 bps, as the yield-to-worst of the S&P U.S. Issued Investment Grade Corporate Bond Index moved from a level of 2.16% at the beginning of the month to 2.76% at the end of month.  The price return of the index was -1.44% MTD, but 30 bps of coupon return brought Read more […]

Treasury Rates Are Up, But For How Long?

Having touched a low of 1.66% as of mid-February 2015, the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Index bounced up to close at 2.05% on Feb. 13, 2015. The move away from the safety of Treasuries came as an impasse occurred in the negotiations between Greece and their EMU partners. European officials Read more […]

Leverage Loan Redemptions = Record Trading Volume + Market Depth?

With the majority of the fixed income world taking sides on prize fights like Greece, the European Central Bank (ECB), inflation, and energy-related debt, you may have missed the beating leveraged loans have been receiving in the media. The Financial Industry Regulatory Authority (FINRA) cited senior loan liquidity concerns in their January letter, stating “…these Read more […]

Lower Oil, Lower Yields

The unprecedented drop in oil prices has been a driver of global economic worries.  As of Jan. 16, 2015, the total return of the S&P GSCI Crude Oil is down 8.89% MTD, after closing out 2014 down 42.5%. As of the same date, the S&P U.S. Issued Investment Grade Corporate Bond Index has returned 1.76% MTD, Read more […]

Global Forces At Work

Global yields have started the new year lower, as the yield of the S&P Global Developed Sovereign Bond Index was  1.05% as of Jan. 5, 2015.  The index did touch a low of 0.94% at the end of November before bouncing up to close 2014 at 1.08%.  Looking back 10 years, the yield was as Read more […]