Credit Rally Takes a Breather
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.