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Federal Reserve Chair Kevin Warsh said the central bank would take its cues from the bond market. One bond manager says that plan backfired quickly.
Bond yields still look attractive, but investors are earning little extra for taking on corporate credit risk, according to Thornburg Investment Management. Key Takeaways: Investment-grade spreads reached their tightest point since 1998, while high-yield spreads matched pre-2007 levels.
Corporate bond spreads, the extra yield investors demand for default risk, have tightened for three years even as delinquencies and bankruptcies climbed, according to Thornburg Investment Management. Key Takeaways: Corporate credit spreads have tightened even as delinquencies and bankruptcies have climbed.
The Treasury's bond buybacks were supposed to be a routine liquidity operation. On Wall Street, they have become something more contested.
The prolonged zero-interest-rate environment that provided massive tailwinds for U.S. markets is shifting as central banks adjust policy and global interest rates normalize. Global capital costs are rebalancing, creating a compelling backdrop for investors to reevaluate international equities.
A 30-year U.S. Treasury yield near 5% is rare. It has appeared on only a handful of trading days over the past decade, according to Thornburg Investment Management.
Thornburg Core Plus Bond ETF (NASDAQ: TPLS - Get Free Report) shares traded up 0% on Thursday. The stock traded as high as $25.43 and last traded at $25.41. 286 shares changed hands during mid-day trading, a decline of 95% from the average session volume of 5,853 shares. The stock had previously closed at $25.40.
Just over a year ago, the Thornburg Core Plus Bond ETF (TPLS) and the Thornburg Multi Sector Bond ETF (TMB) made their debut. The launches came in a year that saw a record number of active ETFs hit the market (almost 1,000, per Morningstar).