U.S. fixed income has been lackluster so far this year as rate-hike worries have been offset by periodic flights to safety, but high yield should continue to outperform.
Strategic M&A activity in health-care sector remains robust.
GDP not as low as it looked; Fed commentary specifically noncommittal.
We expect the high-yield sector to continue to outperform the investment-grade sector in the second half of the year.
Greek drama interesting to watch, but not meaningful to overall picture.
Corporate credit spreads may widen out a bit in the near term, but Greece's troubles should not lead to a systemic financial crisis, says Morningstar's Dave Sekera.
Curtain coming down on Greek tragedy.
Interest rates appear poised to rise further over time as the economy improves, creating an environment in which high yield should continue outperforming investment-grade.
Fed remains on hold; waiting for stronger economic signals.
Retail sales strong enough to raise economic forecasts, but not high enough to prompt Fed to raise rates this month.
Rising rates have pushed bond indexes into the red this year, but high-yield bonds, helped by tightening credit spreads in energy, have bucked the trend.
Payrolls and Other Economic Indicators Looking Better
Economic contraction in first quarter should prove to be an anomaly.
Rise in core CPI stokes inflation fears.
Weak retail sales report calls expected economic rebound into question.
U.S. employment report just right: not too hot, not too cold.
We continue to expect that high-yield bonds will provide better returns than investment-grade as underlying rates tick up and moderate economic growth holds down defaults.
Slowing consumption, falling exports, weak energy sector lead to stagnant GDP growth.
The transaction is heavily oversubscribed.
Pace of economic growth in China slows; investors bet on additional easing.
The ECB's QE program and soft economic data have driven fixed-income returns, while miserly yields on sovereign debt make U.S. corporates more attractive to global investors.
Barclays' credit rating downgraded; UnitedHealth acquiring Catamaran.
European banks downgraded; Kraft and Heinz to merge.
Considering the historically low interest rates on sovereign bonds in developed markets, corporate bonds should perform well on a relative basis.
Fed intimates that rates will rise at a slower pace.
New issue supply starting to overwhelm demand.
Huge new issue supply easily digested by market.
Ahead of the ECB's impending bond purchases, global investors have been attracted to U.S. debt's higher all-in yields and purchasing-power protection as the U.S. dollar appreciates.
Corporations finding cheaper financing in Europe.
Corporations benefit in new issue market as demand drives cheaper financing.
More strategic M&A: Expedia to acquire Orbitz.
Strategic M&A heats up while large LBOs remain cool.
Fixed-income returns were unusually strong as the ECB announced a stimulus program, uncertainty followed Greek elections, and growth slowed in China.
Looking at the impact of Europe's quantitative easing program on corporate bond markets.
New issue market subdued; JPMorgan's issue attractive whereas Ecolab looked expensive.
Fixed-income returns in 2014 primarily driven by declining interest rates.
With falling interest rates behind us, we expect the high-yield market will outperform the investment-grade market, even if we see some energy-sector defaults.
The boost from declining rates may be over, but macroeconomic fundamentals in the U.S. should generally be supportive of credit risk.
Retailers' bonds outperform while energy bonds continue to underperform.
Will the Fed finally eliminate 'considerable time'?
New issue market reaches new volume records
Declining rates have boosted investment-grade securities, but the energy sector's woes have held back high-yield bonds.
China cuts interest rates and ECB pledges to ramp up its stimulus programs.
GDP and inflation pick up in euro area, which may keep ECB monetary policy on hold.
Economic metrics keep Fed on autopilot; ECB intimates more QE is coming.
Although spreads could grind a bit tighter in the near term, rising interest rates will be a headwind.
GDP grows 3.5%, but is likely to moderate in the fourth quarter.