{"id":485225,"date":"2022-08-16T22:38:00","date_gmt":"2022-08-16T19:38:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/"},"modified":"2022-08-16T22:38:00","modified_gmt":"2022-08-16T19:38:00","slug":"in-one-chart-junk-bonds-sweep-to-a-record-summer-rally","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/","title":{"rendered":"#In One Chart: Junk bonds sweep to a record summer rally"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af136f45ea82\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af136f45ea82\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/#%E2%80%9CIn_One_Chart_Junk_bonds_sweep_to_a_record_summer_rally%E2%80%9D\" >&#8220;In One Chart: Junk bonds sweep to a record summer rally&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/#Stocks_arent_the_only_sector_seeing_a_powerful_summer_rally\" >Stocks aren\u2019t the only sector seeing a powerful summer rally<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/#Junk_bonds_stage_a_record_rally_in_July_to_August\" >Junk bonds stage a record rally in July to August<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/in-one-chart-junk-bonds-sweep-to-a-record-summer-rally\/#Joy_Wiltermuth\" >Joy Wiltermuth<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CIn_One_Chart_Junk_bonds_sweep_to_a_record_summer_rally%E2%80%9D\"><\/span>&#8220;In One Chart: Junk bonds sweep to a record summer rally&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Stocks_arent_the_only_sector_seeing_a_powerful_summer_rally\"><\/span>\n  Stocks aren\u2019t the only sector seeing a powerful summer rally<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001113475\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001113475\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Stocks aren\u2019t the only thing sizzling this summer.<\/p>\n<p> U.S. corporate bonds with speculative, or \u201cjunk,\u201d credit ratings also have staged a breakneck rally in recent weeks, picking up momentum seen lately in major stock indexes as investors bet on a softish landing for the economy.<\/p>\n<div class=\"paywall\">\n       Junk bond spreads last week posted their quickest retreat on record \u2014 only 1.2 months \u2014 narrowing from roughly 600 basis points to 425 basis points above the risk-free Treasury rate from July 5 to Aug. 11, according to Martin Fridson, chief investment officer at Lehmann Livian Fridson Advisors. Spreads are a gauge of credit risk.<\/p>\n<p>That marks the quickest spread retreat on record in that range (see chart), or at least since 1996 when the ICE BofA US High Yield Index was created, according to Fridson. <\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:63.57142857142857%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-605075?width=540&amp;size=1.5744157441574416 540w, https:\/\/images.mktw.net\/im-605075?width=620&amp;size=1.5744157441574416 620w, https:\/\/images.mktw.net\/im-605075?width=639&amp;size=1.5744157441574416 639w, https:\/\/images.mktw.net\/im-605075?width=700&amp;size=1.5744157441574416 700w, https:\/\/images.mktw.net\/im-605075?width=700&amp;size=1.5744157441574416&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-605075?width=700&amp;size=1.5744157441574416&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-605075?width=700&amp;size=1.5744157441574416&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-605075?width=700&amp;height=445\" alt=\"\" title=\"\">\n      <\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Junk_bonds_stage_a_record_rally_in_July_to_August\"><\/span>Junk bonds stage a record rally in July to August<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Lehmann Livian Fridson Advisors, ICE Indices<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/p><\/div>\n<p>       \u201cPrior to this year, such movements never took place over less than 3.9 months,\u201d Fridson wrote Tuesday, in commentary that first <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared in PitchBook LCD.<\/p>\n<p>\u201cOver a strikingly short interval, high-yield investors came around to believing inflation was sufficiently under control, and that the Fed would not have to hike interest rates dramatically enough to trigger a deep recession,\u201d Fridson wrote. \u201cTime will tell whether they were correct in changing their views on that matter.\u201d<\/p>\n<p>Companies with speculative credit ratings often have been the first to buckle whenever the U.S. economy slows or a recession hits, particularly if it also coincides with scarce, or more expensive borrowing costs.<\/p>\n<p>Investors often gain exposure to junk bonds through exchange-traded funds. The two largest are the iShares iBoxx $ High Yield Corporate Bond<br \/>\n        HYG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204471305\/composite\" class=\"negative\">-0.47%<\/bg-quote><br \/>\n       and the SPDR Bloomberg High Yield Bond ETF<br \/>\n        JNK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202941311\/composite\" class=\"negative\">-0.38%<\/bg-quote><span>.<\/span><br \/>\n       This year the funds were down 9.9% and 10.7%, respectively, as of Tuesday, according to FactSet data.<\/p>\n<p>Historic losses in bonds in the year\u2019s first half were pegged mostly to volatile Treasury yields, with the 10-year<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">2.812%<\/bg-quote><br \/>\n       rate on Tuesday near 2.8%, up from 1.2% a year ago. Although, the focus lately has turned to potential default risks as weaker companies navigate the Fed\u2019s tightening cycle.<\/p>\n<p>On a yield basis, the ICE BofA US High Yield Index narrowed to about 7.2% on Monday from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/BAMLH0A0HYM2EY\" class=\"icon none\">a peak yield this year of about 8.9%<\/a> on July 30. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Federal Reserve Chairman Jerome Powell began talking about the potential for a \u201csoftish\u201d landing for the U.S. economy in March, as the central bank began lifting interest rates from pandemic-era lows to fight stubbornly high costs of living. <\/p>\n<p>Recession fears have climbed since this spring as investors worry about consumers potentially pulling back on spending with inflation soaring and higher borrowing costs biting as the Fed increases interest rates.<\/p>\n<p><strong>Read:<\/strong> Why Vanguard likes U.S. high-yield bonds in near-term after recent big gains<\/p>\n<p>The S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.19%<\/bg-quote><br \/>\n       was up more than 17% through Monday from its mid-June low, but still was down9.7% on the year through Tuesday.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Joy Wiltermuth\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/joy-wiltermuth\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/JoyWiltermuth\",\"text\":\"@JoyWiltermuth\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"mailto:joy.wiltermuth@marketwatch.com\",\"text\":\"joy.wiltermuth@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Joy_Wiltermuth\"><\/span>Joy Wiltermuth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"104_MW\" author-name=\" Joy Wiltermuth\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fjunk-bonds-sweep-to-a-record-summer-rally-11660676456%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-710F-D839113CB6B4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;In One Chart: Junk bonds sweep to a record summer rally&#8221; Stocks aren\u2019t the only sector seeing a powerful summer rally Stocks aren\u2019t the only thing sizzling this summer. U.S. corporate bonds with speculative, or \u201cjunk,\u201d credit ratings also have staged a breakneck rally in recent weeks, picking up momentum seen lately in major stock&#8230;<\/p>\n","protected":false},"author":1,"featured_media":485226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-605084\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-485225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/485225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=485225"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/485225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/485226"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=485225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=485225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=485225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}