Fed-backed credit market gives investors a reason not to worry even as volatility returns to stocks

  • 📰 CNBC
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 72%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Credit spreads have tightened to nearly pre-coronavirus levels since the Fed stepped in with massive bond-buying programs to quell the tumult.

after an alarming pullback last week triggered by signs of a coronavirus resurgence.

Even during the brutal sell-off last week — the worst weekly performance for the S&P 500 since March — the credit market shrugged off the pandemic scares, leading many to believe stock traders were overacting. Credit spreads have tightened to nearly pre-coronavirus levels since the Fed stepped in. Investment-grade spreads narrowed to about 2.3 percentage points over Treasuries, after jumping to the highest level since 2009 in March. High-yield spreads also stayed at the 6 percentage point range over Treasuries after rising to above 11 percentage points in March.

Investors are piling into bond funds at a historic pace on the back of the Fed's commitment to support the credit market. U.S. investment-grade mutual funds and ETFs experienced another week of strong inflows at more than $11 billion in the week ending on June 10, the second highest ever and following the record $14.8 billion inflow the prior week, according to Bank of America.spiked to a 52-week high on Monday in the wake of the Fed announcement.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

Why doesn't the federalreserve let the markets function? Seems they are meddling in markets way to much.

It’s only a matter of time before average people start to wonder why we suddenly have all this money to bail out a fraction of 1% of the richest people in society, yet we can’t afford to pay for education or healthcare & our infrastructure is crumbling to 3 world status.

就这?

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Mike Santoli market notes: Market finds support, credit spreads narrow, routine pullback?New for subscribers: Mike Santoli market notes: Market finds support, credit spreads narrow, routine pullback? Check out CNBCPro for a free trial.
La source: CNBC - 🏆 12. / 72 Lire la suite »

'Credit where credit is due': Robinhood investors called the market bottom, showing 'impeccable' timing, Societe Generale says | Markets InsiderRobinhood traders displayed 'impeccable' timing when they rushed into the market as it hit recent lows in mid-March, according to a Monday note ...
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »