Corporate Bond Commentary - January 29, 2018

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Includes: ACP, AIF, ANGL, ARDC, BSCG, BSCH, BSCI, BSCJ, BSCK, BSCL, BSCM, BSCN, BSCO, BSCP, BSCQ, BSCR, BSJP, CBND, CIF, CIK, CIU-OLD, CJNK, CLY-OLD, CLYH, CORP, CRED-OLD, CSI, CSJ-OLD, CWAI, DHG, DHY, DSU, EAD, FALN, FCOR, FHY, GGM, HCOR, HIX, HYDB, HYG, HYIH, HYLB, HYLD, HYLS, HYT, HYUP, HYXE, IBCC, IBCD, IBCE, IBD, IBDB, IBDC, IBDD, IBDF, IBDH, IBDJ, IBDK, IBDL, IBDM, IBDN, IBDO, IBDP, IBDQ, IBDR, IBDS, IGEB, IGHG, IGI, IGIH, IVH, JNK, JPST, JQC, JSD, KIO, LDRI, LLQD, LQD, LQDH, MCI, MHY, MLQD, MPV, NHS, PCF, PHF, PHT, QLTA, SFIG, SJB, SKOR, SLQD, SPIB, SPLB, SPSB, UJB, USHY, VCIT, VCLT, VCSH, VLT, VTC, WFHY, WFIG
by: Robert W. Baird & Co.

Summary

Investment-grade and high yield debt demand remains strong sending credit spreads tighter and yields somewhat lower.

The impact of the tax reform late last year has limited new bond issuance.

This forces investors into the secondary market which will likely continue during earnings season and possibly for most of the quarter.