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Credit Insights

Credit Insights: Volatility Remains Muted in Corporate Bond Market; Yield Curve Continues to Flatten

Volatility remains muted in corporate bond market; yield curve continues to flatten.


The average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) tightened one basis point to +116; whereas, the BankAmerica Merrill Lynch High Yield Master Index widened 3 basis points to +376. Volatility remained muted as credit spreads have traded in a very narrow range. Over the past four weeks, the average spread in the investment-grade market has only varied by 2 basis points, and in the high yield market, the average spread has only varied by 11 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.