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

Despite positive equity returns for the month, fixed income markets signaled a risk-off view as credit markets declined and the 10-year Treasury rate fell.

Despite solid economic data and better-than-feared corporate earnings credit turned in mildly negative returns in May.

This year’s credit market dynamics reversed course sharply in May. Senior secured loans declined as long-term interest rates and rates volatility fell last month.

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

Leveraged credit declines in May | Prices decline to two-month lows despite stable fundamentals

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

Amid the emergence of significant regional and global bank stress, fixed income volatility spiked in March as the MOVE Index rose to levels last seen in 2008.

Sharply higher interest rates, geopolitical tensions, a volatile commodities complex, inflation, and the ultimate course of the Fed’s tightening cycle have caused volatility for much of the quarter as markets have been forced to quickly recalibrate expectations given these rapidly evolving situations.

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