Newfleet Insights



Newfleet blog focuses on long-term total return history of bank loan market
Bank loans proved to be very resilient during this summer’s Treasury volatility and remain a leading fixed income sector for the year, returning 3.53% through September (S&P/LSTA Leveraged Loan Index).
From our multi-sector vantage point, we continue to see very large corporate bond offerings come to market that not only fill, but are oversubscribed.
Yields on the 10-year U.S. Treasury spiked 54 basis points during the month of May. Today (June 3), the 10-year sits at approximately 2.18%.
The emerging markets (“EM”) debt asset class is an approximately $2.5 trillion market – twice the size that it was in 2008, and twice the size of the U.S. high yield market today.
In our view, interest rate risk deserves as much attention as credit risk when investing in fixed income markets. Investor demand for yield and, in the case of investment grade corporate bonds and Treasuries, “safety” has driven bond prices to all-time highs and yields to corresponding lows.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.