Some riskier parts of the bond market did pretty well this week.
As it related to indexes, the loan index was up about 0.25%, the junk bond index was up about 0.17%, and the stock market index had about an 0.11% gain.
With some new developments on interest rates from the Fed, our view is that stocks and high yield bonds may rally in the coming weeks and months.
Hope you have a good weekend!
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Riskier parts of the bond market was in reference to the junk bond index defined below. The loan index is in reference to the Credit Suisse Leveraged Loan Total Return Index with performance data gathered from Bloomberg under the ticker CSLLLTOT Index for the date range of 2/4/2019 – 2/8/2019. The junk bond index was in reference to the Bloomberg Barclays US Corporate High Yield Total Return Index with performance data gathered from Bloomberg under the ticker LF98TRUU Index for the date range of 2/4/2019 – 2/8/2019. The stock market index is in reference to the S&P 500 Index with performance data gathered from Bloomberg under the ticker SPX Index for the date range of 2/4/2019 – 2/8/2019. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. Statements about a possible rally in the future in stocks and high yield bonds from the Fed’s actions on interest rates was in reference to Scott Minerd’s statements during an interview on Bloomberg TV on 2/7/2019 (https://www.bloomberg.com/news/videos/2019-02-07/guggenheim-s-minerd-expects-high-yield-and-stock-rally-to-be-sustained-video).