Chart of the Day: Performance across fixed income classes during 2013

By Sober Look On Aug 19, 2013

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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Sober Look is a no-hype financial markets/macro blog that typically relies on data analysis, primary sources, and original materials. We keep it concise, to the point, with no self-promoting nonsense, and no long-winded opinions. If you are looking for Armageddon predictions or conspiracy theories, you will be thoroughly disappointed. Topics include financial markets, banking, asset management, risk management, derivatives, global economy, policy, and regulation, with the emphasis on finance education. Follow him on his blog or twitter.

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