While the equity markets are hitting record highs, bond are taking a break.
Prices for safe-haven assets such as U.S. Treasury bonds weakened.
Prices for risk assets surged higher and prices on safe-haven assets were pummeled.
For one, Kraft Heinz announced a trifecta of negative issues.
Weekly high-yield fund flows normalize after prior week's surge.
Corporate bond market runs out of steam midweek.
So far this year, investment-grade and high-yield bond indexes have outpaced government bonds.
The Morningstar Corporate Bond Index tightened 5 basis points last week.
Investors have become increasingly comfortable taking on corporate credit risk.
After the holidays, investors put cash to work.
Yield curve continues to flatten as rates rise.
China's weaker-than-expected sales and production results exacerbated already dour market sentiment.
Heightened tensions between the U.S. and China aren't helping.
While the equity markets rose, the corporate bond market continued to operate in a risk-off mode.
But falling oil prices have pressured corporates over the past month.
The U.S. Treasury market gave back the price gains it made the prior week.
Investors no longer felt the need to hide in U.S. Treasuries.
Turmoil in the equity market spurred a flight to safety.
Corporate credit spreads on investment-grade corporate bonds held steady and high-yield bonds backed off slightly.
Prices for Italian sovereign bonds dropped precipitously across the board.
As investors chased risk asset prices higher, bond prices in the U.S. Treasury market weakened.
Strong demand easily soaked up the deluge of new issue supply.
Last week was the busiest of the year for new corporate bond issuance.
Volatility brought about by Turkey's chaos has quickly dissipated.
The lira regained some of its lost value against the dollar last week.
With the lira plunging, it becomes more difficult for Turkey to support and repay its sovereign debt.
Corporate Bond Market: Summer Starts to Slip Into Fall
A multitude of concerns kept investment-grade investors at bay in the first half.
GDP growth is likely to keep the Fed on track to raise rates.
Most fixed-income indexes declined in the second quarter as rising interest rates took their toll.
Investment grade struggles while high yield strengthens.
Global asset markets had a wild ride at the beginning of last week as political turmoil roiled Italy's sovereign bond market.
The corporate bond market couldn't maintain momentum in the face of interest-rate increases and new issue supply.
Higher oil prices have bolstered corporate bonds in the energy sector, especially among the lower-rated issuers.
High-yield fund flows seesaw between inflows and outflows.
Volatility dwindled over the course of the week, trading action felt light, and new issue activity was muted.
Although the stock market eked out a gain last week, the S&P 500 is muddling along near the middle of its year-to-date trading range.
Investors tiptoe back into high yield.
It appears that corporate bond investors are becoming more comfortable undertaking credit risk at these levels.
Rising rates and widening credit spreads took their toll in the first quarter of 2018.
Rising interest rates and widening credit spreads have taken their toll.