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March 2026 Monthly Bond Market Review

February economic data continued to reflect the measured disinflationary progression that has characterized conditions throughout the post-pandemic normalization cycle, with

Oil Spike, Fed Meeting Ahead

The conflict with Iran remained the primary driver of market sentiment this week. Oil prices spiked as global supplies remained

Markets Face Tariffs

Trade policy uncertainty continued to shape financial markets this week as replacement tariffs under Section 122 of the Trade Act

Economic Data Signals Resilience

There was a plethora of economic data releases this week with most indicating the resilient economic backdrop remains in place.

Finding Safety in a Volatile Corporate Market

Over the past 20 years, there has been a significant shift in the ratings composition of the investment grade corporate bond universe. Using the ICE Bank of America Merrill Lynch US Corporate Index (C0A0) as a representation of this universe, the number of securities has grown by about 150% from 3,378 members in December of 1999 to 8,583 members in June 2020. As a greater number of securities and mix of issuers has increased, “BBB” rated bonds have grown substantially as a percentage of the index. In addition to the heavier presence of “BBB” ratings, the dispersion of “AAA”/“AA”/“A” rated bonds have made a gradual shift towards the lower rated portion. With the shrinking portion of the highest rated corporate bonds, the investment grade market has posed challenges in finding a competitive return while remaining up in quality.

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