Corporate Bond Commentary - February 12, 2018

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Includes: ACP, AIF, ANGL, ARDC, BSJP, CBND, CIF, CIK, CJNK, CORP, CRED-OLD, CSI, CWAI, DHG, DHY, DSU, EAD, FALN, FCOR, FHY, GGM, HIX, HYDB, HYG, HYIH, HYLB, HYLD, HYLS, HYT, HYUP, HYXE, IBD, IBDS, IGEB, IGIH, IVH, JNK, JQC, JSD, KIO, LQD, MCI, MHY, MLQD, MPV, NHS, PCF, PHF, PHT, QLTA, SJB, UJB, USHY, VLT, VTC, WFHY, WFIG
by: Robert W. Baird & Co.
Summary

Volatility finally impacted the investment-grade and high yield debt markets last week with a sell-off in both sectors.

However, high yield caught the brunt of the impact with spreads widening almost 50 bps while investment-grade was wider by just a few bps.

Energy was hard hit with oil prices falling below $60 per barrel and investors moving money out of corporate bonds for week (ending on Wednesday).