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Credit market commentary: September 2020

Credit markets were mixed in September, with HY Bonds posting a -1.04% return and Senior Secured Loans returning 0.63%. Interest rates remained relatively rangebound throughout the month and the duration-sensitive Barclays Agg returned -0.05%, its second straight monthly decline.

The traditional “40” is broken

Declining rates have left the traditional "40" struggling. Investors need to find ways to fix their fixed income allocation by seeking alternative sources of income, return and diversification.

Chasm between stocks and sentiment grows wider

Market activity has been divorced from investor sentiment of late. Our chart looks at the mismatch and why investors might prepare for a pullback.

Q4 2020: Staying active

While uncertainty is still top of mind, we believe active managers will find opportunity in the dispersion across asset classes, industries and ratings

Treasury market quiets as equity volatility picks up

Treasury rate volatility has flatlined since April. Our chart looks at why yield-hungry investors may need to find new ways to generate income.

Stocks prone to volatility amid uncertain recovery

Equities fell this week on the Fed’s gloomy outlook. Our chart looks at what a prolonged slow-growth economy could mean for investors.

The implications of a rising default rate

Many cite the coming wave of defaults as cause for concern, but history tells us otherwise

A narrow rally reveals many stocks left behind

Investors got a taste of what markets may look like if tech turns south. Our chart looks at the uneven performance of S&P stocks over the past year.
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