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Quarter-End Insights

Credit Markets: Plummeting Commodity Prices Take Their Toll

The combination of falling commodity prices and the continuation of heightened idiosyncratic risk has increased risk aversion, leading to a significant widening in corporate credit spreads.

  • Corporate credit spreads widen to multiyear highs.
  • Federal Reserve holds off, yet again, on raising the federal funds rate.
  • High-yield market still poised to outperform investment-grade market.
  • Chinese equity markets falling, despite Beijing's best efforts to halt the slide; emerging-markets fixed-income markets at risk.