Strong corporate and economic data caused high yield bonds and senior secured loans to rally. High duration portfolios, like the Barclays Aggregate, continued to struggle amid rising rates. High yield bonds generated their strongest quarterly return since Q1 2017.

IG bonds have turned negative over the past 9 months while HY has moved higher. This week’s chart looks at the impact of duration as rates rise.

High yield bonds and senior secured loans may offer attractive yields and an appealing entry point compared to stocks.

With the Fed potentially pausing after a May rate hike, this week’s chart looks at credit returns after historical pauses in Fed rate hiking cycles.

High yield bonds have outperformed senior secured loans in recent months, given their more attractive duration profile and higher credit quality.

See how spreads on corporate bonds have fared over the last 20 years, and why that might point to a prolonged search for income.

Our Investment Research Team examines what’s driving reactionary responses in the credit market.

Mr. Dwin is the Founder and CEO of Lafayette Square, a model investment platform that deploys services-backed capital to local communities, independent businesses and diverse investors. Mr. Dwin currently serves as Chair of the Board of Trustees for the Vera Institute of Justice. He also serves on the nonprofit boards of the Children’s Hospital of...