Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Jeff Margolin
Closed-End Fund Analyst
Click for Bio

Follow Jeff on LinkedIn
Ryan Issakainen
ETF Strategist
Click for Bio

Follow Ryan on LinkedIn
 

  Senior Loan & High Yield Review - 2nd Quarter 2014
Posted Under: Senior Loan • High Yield
During the second quarter of 2014, an accommodative Federal Reserve (the "Fed"), strengthening economic data and declining interest rates helped drive returns for equities and longer duration fixed-income assets. Investors continued to scrutinize the rhetoric from the Fed, attempting to gauge the potential pace and timing of prospective interest rate increases. The Fed's bond buying program is now less than half of the $85 billion-per month program that it was at its peak, and as of the time of this commentary, the Fed has announced the nearly imminent completion of its bond buying at its forthcoming meeting in October.

Much like the first quarter of 2014, the return of leveraged loans, and to a lesser extent, high-yield bonds, underwhelmed relative to other, more rate sensitive, traditional fixed income asset classes in the quarter. As the yield on the 10-year treasury fell 19 basis points from 2.72% to 2.53% during the quarter, it should come as no surprise that longer-duration fixed-income assets were the strongest performers. However, as steadily improving economic data continues to surface, we continue to believe the Fed will have the motivation they require to complete the quantitative easing program and begin the process of raising rates. In the interim, with short-term interest rates remaining at all-time lows and corporate profits healthy, we maintain our positive outlook for the senior loan and high-yield markets.

For a discussion of notable events in the senior loan and high-yield market as well as an outlook for the future, click here to read the whole report.
Posted on Thursday, July 17, 2014 @ 8:30 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 PREVIOUS POSTS
The Other Discount Advantage
Municipal Closed-End Funds: MNCEFT Closes Above 1600; Silent Rally Continues
Commodity ETFs and the Business Cycle
Year-To-Date Performance of Municipal Closed-End Funds Shows the Importance of Balance
Mid-Quarter Update: Good Start to 2014 for Many Categories of CEF Marketplace; Still Compelling Values Available
Preparing for the Unexpected with Commodity Futures ETFs
The Power of Closed-end Fund Distributions
Following Solid December, Municipal CEFs off to Good Start in 2014
Senior Loan CEFs: Big Disparity Between Share Price and NAV Performance in 2013
My CEF Final Four
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.