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%

Deutschland Nachrichten Nachrichten

Deutschland Neuesten Nachrichten,Deutschland Schlagzeilen

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.

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

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?

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 12. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

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.
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »

'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 ...
Herkunft: BusinessInsider - 🏆 729. / 51 Weiterlesen »