Senior Loan & High Yield Review
Macro Overview

U.S. equity markets continued their march higher in the fourth quarter with the S&P 500 Index gaining 6.64%. This brought the 2017 full year return to a robust 21.83%. Interest rates, as measured by the 10-yr U.S. Treasury bond, were basically unchanged in the quarter and over the course of the year, closing out at 2.41% having begun the year at 2.44%. With the introduction of new tax legislation that is expected to boost corporate earnings, a weaker U.S. dollar which tends to benefit multinational companies and relatively low interest rates, markets have experienced very little volatility. Overall, the general tone from equities and low volatility provided a firm tailwind for senior loans and high-yield bonds over the course of the year, with senior loans up 4.11% and high-yield bonds up 7.47%

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Posted on Tuesday, January 16, 2018 @ 2:33 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.