Credit Spreads Limit Bond Performance Outlook

Economic Blog


Investment-grade credit spreads, the extra yield you get from investment-grade corporate bonds compared to similarly dated US Treasuries, have already tightened to a level you usually only see during the middle of the economic cycle—and that can have consequences for bond investors. As shown in the LPL Chart of the Day, the current spread as of January 15 was at 1%, close to the tightest level of the previous cycle of 0.91%, hit in February 2018, and in the bottom quarter of all values going back to 1997. Continue reading

Stocks Open Higher | Daily Market Update

Tuesday, January 19, 2021

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Market Signals Covers It All

This week’s Market Signals podcast covers all the latest events impacting markets and the economy: Q4 earnings, a new stimulus proposal, the Democratic blue wave, and President-elect Joe Biden’s new economic policy plan. Watch Market Signals: More Stimulus, New Policies, and Stellar Earnings Season. Continue reading