Despite multiple “worst-ever” indicators, U.S. equity and corporate credit markets rallied back to near pre-pandemic levels in Q2. With markets trending one way and economic data another, we’re left with mixed signals.

The recovery in markets continued in June, but at a slower pace amid concerns over rising COVID cases. HY Bonds and Senior Secured Loans still ended the month up, returning 0.97% and 1.14%, respectively, capping off the best quarter for each market since Q3 2009. Interest rates spiked early in the month before declining slightly, and the duration-sensitive Barclays Agg returned 0.63%.

Concerns over spikes in COVID-19 cases weighed on energy sentiment in June. As global crude supply remains muted, further recovery in oil prices hinges on the return of demand in the U.S., the world’s largest energy consumer.

After a decade of strong performance in which property prices more than doubled, the commercial real estate market, like many other markets across the globe, was halted in its tracks by the pandemic.