Market commentary

Credit markets were mixed in October. Loans returned 0.27% while HY bonds ended their 12-month streak of gains, down 0.18%.

Despite some modest weakness in high yield during the second half of September, we believe credit remains on solid footing for the remainder of 2021.

The duration-sensitive Barclays Agg was negative in August as long-term interest rates rose slightly.

Declining long-term rates have begun to shift the technical picture in credit markets, which bear monitoring going forward.

The duration-sensitive Barclays Agg posted its third positive return of the year in June as long-term interest rates declined slightly.

Markets traded sideways for much of the month as inflation concerns and cryptocurrency market volatility weighed on sentiment.