Credit Rally Takes a Breather
Telecom, tech, and media credits weaken the most, while REITs, transportation, and insurance held up better.
Credit Insights
Mentioned: Allison Transmission Holdings Inc (ALSN)
, Baxter International Inc (BAX)
, R.R.Donnelley & Sons Co (RRD)
, Terex Corp (TEX)
, PPG Industries Inc (PPG)
, Abbott Laboratories (ABT)
, Sprint Corp (S)
, The Interpublic Group of Companies Inc (IPG)
, DuPont de Nemours Inc (DD)
, Freeport-McMoRan Inc (FCX)
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.
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David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.