Insights

Where will investors find income? Seven Fed rate hikes since 2015 have had only a small impact on yields.

HY Bonds and Senior Secured Loans outperformed the Barclays Agg as retail inflows supported the leveraged credit markets on the back of strong monthly returns for U.S. equities.

High yield bonds and senior secured loans gain in June. Yield curve flattens on rising rate expectations.

Interest rate sensitivity drove returns during the month as higher-duration assets tended to outperform as 10-year Treasury rates fell.

As interest rates rose, high yield bonds and senior secured loans outperformed more duration-sensitive asset classes.

Investment grade bonds’ yield and lengthening duration over time