By Sober Look
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.