Leader Week in Review - June 12th, 2015
Economic Data Releases:
The bond market rout took pause as the Treasury curve flattened, although the 10 Year Treasury did touch 2.50% mid-week. Meanwhile, both MBS and Credit spreads widened. Year-to-date, High Yield has been the place to be with all other major fixed income sectors in the red or barely positive (see table below). Interestingly, High Yield has returned the same amount year-to-date as Floating-Rate Bank Loans (see Barclays U.S. High-Yield Loan Index), despite having more interest rate risk. Investment Grade Credit has underperformed as spreads have widened alongside the Treasury market sell-off; spreads are now close to the highs for the year (chart 2).
Upcoming Economic Data Releases: