Corporate Bond Market Returns

Index data provided by Markit Group Ltd

i) YTD Returns 2017: (to end January)



The FTSE returned -0.6% for the month having promised so much through it. The German DAX equity index had a couple of bad sessions into month-end and gains, which were looking like being 3% for the month, were more like +0.5% as we closed out. The US indices are in positive territory for the month.

Investment grade spreads moved a touch tighter as measured by the Markit iBoxx index – which was up at B+134.2bp. Returns in IG credit were at -0.6% for January.

Sterling credit had a poor month even though spreads were tighter, the iBoxx index at G+150.2bp (-2bp in January). The weakness in Gilt markets though saw that sterling corporate IG has lost 0.95% in the month. Eurozone govvies though have lost over 2%.

The clear winner in corporate credit for January has been the HY market. The lack of supply has helped – as has the shorter duration nature of the market. The index has tightened by a stunning 33bp in January alone and returns for the year thus far sit at a heady 0.75%.

ii) IG & HY Corporate Bond Total Returns

iii) Investment Grade Corporate Bond Total Returns

iv) High Yield Corporate Bond Total Returns