Credit Insights

Snapback Starts to Run Out of Steam

Dave Sekera, CFA

The snapback in the corporate bond market that began in early January has begun to run out of steam. In the investment-grade corporate bond market, the average spread of the Morningstar Corporate Bond Index tightened 5 basis points to +135. In the high-yield market, the average credit spread of the ICE BofAML High Yield Master Index widened 7 basis points to +434. Since hitting their widest levels earlier this month, investment-grade credit spreads have tightened 27 basis points and high-yield spreads have tightened 110 basis points.