Market commentary

The duration-sensitive Barclays Agg posted its first positive return of the year in April as long-term interest rates drifted lower.

Interest rate volatility continued to weigh on markets for much of the month.

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.