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Fixed Income Weekly Market Commentary

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This commentary, published by Janney Fixed Income Strategy & Research, covers key occurrences in economics, interest rates, agencies and corporates, and municipal bonds from the preceding week.

JanneyCom_FixedIncomeWeekly_bannerAugust 24, 2015: Mayhem Monday: the slide in energy and global equities has pushed credit spreads wider and spurred a brief flight-to-safety in bonds. Click here to read more.

IN THIS ISSUE OF FIXED INCOME WEEKLY:

  • Selling in risk assets has grown aggressive, with many equity markets off double digits in a week; talk of the “r” word has reemerged, but we judge a recession unlikely.
  • Probability of a September rate hike has fallen to nearly nil and December is less than a coin flip, but rates markets finding resistance to further rallies because “peak” fed funds is largely priced.
  • Traditionally staid August has gotten busy for the corporate bond markets, with credit spreads widening sharply as risk assets sell off across the globe.
  • Investor flows into municipal funds have been treading water of late, as investors have grown disenchanted with low available returns.