Credit Rally Takes a Breather
Telecom, tech, and media credits weaken the most, while REITs, transportation, and insurance held up better.
Telecom, tech, and media credits weaken the most, while REITs, transportation, and insurance held up better.
The seemingly unstoppable rally in the corporate credit market took a breather last week. Credit spreads backed up 8 basis points, with the greatest widening occurring after the presidential election. The Morningstar Corporate Bond Index ended the week at +144.
The sectors that weakened the most were telecommunications, technology, and media, which widened 11-12 basis points. Real estate investment trusts, transportation, and insurance held up the best, as those sectors were steady to weakening 3 basis points.
David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.