In the second quarter of 2016, capital markets experienced a major reversal from the negative trends and high volatility of the first quarter. At the low-point, which was reached on February 11, 2016, the high-yield bond index was off 5.14% and the senior loan index was off 1.36% year-to-date, respectively. However, despite the negative trends and volatility early in the year, the high-yield index has swiftly recovered and is now up 9.32% year–to-date while the senior loan index also reversed course and is up 4.51% over the same time period. These returns compare favorably to the S&P 500 Index which was up 3.84% through the first half of the year.
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