Credit market commentary

Bonds were tested by a sharp interest rate spike and declined slightly alongside equities over the last two weeks of February but remained positive on the month, returning 0.35%. Loan prices remained firm, as the asset class outperformed bonds, returning 0.59%.

Credit markets rose through the first few weeks of the month on stimulus optimism and firm technicals in the loan market. However, equity volatility weighed on both asset classes in January’s final week

Vaccine-fueled optimism drove credit markets steadily higher throughout December.

Credit rallied amid broad market strength in November on news of multiple potentially viable COVID-19 vaccines.

Credit markets remained positive in October, despite experiencing weakness during the last week of the month alongside a sell-off in equities.

Credit markets were mixed in September, with HY Bonds posting a -1.04% return and Senior Secured Loans returning 0.63%. Interest rates remained relatively rangebound throughout the month and the duration-sensitive Barclays Agg returned -0.05%, its second straight monthly decline.