Credit Markets Stand Back and Watch Equity Markets Vacillate
Commentary on earnings calls suggests that economic activity in Europe continues to slow and the pace of consumer spending in the U.S. has decelerated in April.
For the most part, the credit markets stood by and watched the equity markets swing back and forth. The average spread in the Morningstar Corporate Bond Index ended the week unchanged at +138 and is essentially flat for the year. Year to date, our corporate-bond index has returned 1.27%, putting it on pace to meet our estimated low- to mid-single-digit return for the year.
David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.