Senior Loan & High Yield Review - 3rd Quarter 2017
Macro Overview

Despite numerous geopolitical headlines in the quarter, most notably U.S. tension with North Korea, equities posted a strong third quarter, with the S&P 500 Index up 4.48%. This brought the year-to-date return to a robust 14.24%. Interest rates, as measured by the 10-yr Treasury bond declined for much of the quarter, falling from 2.30% to as low as 2.04% by early September. However, as the quarter progressed, rates bounced to finish the quarter slightly higher than where they began the quarter, closing out at 2.33%. Overall, positive equity market returns supported by relatively benign volatility and optimism surrounding the release of the GOP tax plan combined with higher crude oil prices provided a firm backdrop for credit markets, in our view. Senior loans were up 1.04% in the quarter while high-yield bonds were up 2.04%

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Posted on Tuesday, October 10, 2017 @ 3:33 PM

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.