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 2017
Posted Under: Senior Loan

Macro Overview
Equities posted a strong second quarter of 2017, with the S&P 500 Index up 3.09%. Equity market volatility remained subdued, despite weaker oil prices, while interest rates declined for much of the quarter. Crude oil fell from an intra-quarter high of $53.40 to $42.53 near the end of the quarter while the 10-year U.S. Treasury yield touched 2.414% in May and drifted to 2.126% by mid-June, eventually finishing the quarter at 2.304%. Declining yields were a boon to fixed-income, with investment grade corporate bonds up 2.42% and high-yield bonds up 2.14% for the quarter. Moreover, the yield-curve flattened significantly in the quarter, with the difference between 2-year U.S. Treasuries and 10-year U.S. Treasuries falling to a mere 79 basis points (bps) in mid-June from 113 bps on March 31, 2017. In our opinion, the primary catalyst for lower rates and a flattening yield curve was a building narrative around weaker inflation data in the U.S. and a view that the Trump Administration's pro-growth policies may be far more difficult to implement than previously anticipated.

Click Here to continue reading.

Posted on Tuesday, July 18, 2017 @ 3:00 PM • 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.
Municipal Update 1st Quarter 2017
The Value of Dividend Growth
Emerging Market Local Currency Review - 1st Quarter 2017
First Quarter 2017 CEF Review
Alternatives Update 1st Quarter 2017
U.S. Investment Grade Credit Investor Update - 1st Quarter 2017
Senior Loan & High Yield Review - 1st Quarter 2017
Diversifying Alpha with Strategy ETFs
Municipal Update 4th Quarter 2016
U.S. Investment Grade Credit Investor Update - 4th Quarter 2016
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.