Fixed income weekly dose of realism, August 19–23

Fixed income weekly dose of realism, August 19–23 (Part 1 of 5)

Why the bond and loan markets have remained jumpy in recent weeks

Bond and loan markets

The bond and loan markets have remained jumpy over the past few weeks on speculation about the Fed’s tapering timeline. The potential reduction in the asset purchase program by the U.S. Federal Reserve has created structural changes in the fixed income markets and affected very long-term trends in the market.

Fixed Income Market - JNK vs BND 2013-08-28Enlarge Graph

Keeping up-to-date with the weekly action is crucial in order to understand where the market is going and when the optimal time to buy may be. This series will recap the action over the last week in the following areas:

  • Interest rate movements
  • Corporate (investment-grade) bond market (BND), (IEI)
  • High yield bond market (JNK), (HYG)
  • Leveraged loan market (BKLN), (SNLN)

Read on to get your weekly dose of realism in the fixed-income markets.

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