Saturday, August 17, 2013

Year-to-date performance across fixed income

Given the ongoing volatility in fixed income markets, it's time to once again to take a look at performance. The chart below shows where we stand on a year-to-date basis for major asset classes from a USD investor's point of view.

Note: returns vary based on specific indices used

No real surprises here, as the only positive return comes from senior corporate loans. Most of the outperformance is the result of these loans paying a floating rate coupon (LIBOR + spread), which is expected to rise with rates. Corporate debt has also benefited from the stock market rally, tight spreads, and relatively low default rates.
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