Login / Register
Contact Us
View Performance
Fixed Income
U.S. Equity
International & Global Equity
Chart Library
Market & Economic Commentary
Fund Literature
Prospectuses & Reports
Fact Sheets
Client Guides
Fund Literature
Advisor Resources
Advisor Materials
View Resources
Tax Information
Corporate Credit Highlights
Glossary of Terms

Weekly Market Summary

Mar 11 to Mar 15, 2024

View Current Performance

Extra Credit*

  • Treasury yields have moved lower over the last few weeks and are now close to January levels. This may seem a bit odd as economic data has been surprising to the upside on the economy (growth forecasts are higher), labor markets (job gains forecasts are higher) and inflation (strong January core print). While the Fed still seems to be sticking to its forecast for cuts in 2024, the case for meaningful easing has weakened and increased the risk of the Fed enacting a shallower easing cycle.
  • Estimates of term premium are also not far from the levels of late last year. Net supply of notes and bonds should ramp up over the coming months and more medium term, as the Fed considers reducing the maturity of its Treasury portfolio—which also means more duration supply to investors.
  • Credit is a bit softer, driven by issuance and not by credit-risk issues. U.S. investment-grade cash has widened by 9 basis points to 97 basis points since reaching two-year tights on Feb. 22. At the same time, high-yield cash has also widened by 9 basis points to 315 basis points. This corresponds to an 18-basis-point outperformance for high yield adjusting for beta.
  • The Bloomberg US Corporate High Yield Index is now $1.36 trillion in par outstanding, up $3.7 billion since the end of February. This month, 34 new issues added $24.9 billion in new index par, and there was $150 million in fallen angels. These additions were offset by $9.6 billion in called debt, $4 billion in bonds hitting the 12-month maturity constraint, $3.3 billion in rising stars (Las Vegas Sands, Royal Caribbean Cruises), and $300 million in defaulted debt (Cano Health).
  • Bank-loan and high-yield bond default rates, excluding distressed exchanges, finished February at 1.77% and 1.66%, respectively, down from 1.95% and 2.04% in January. The 25-year historical default rate for loans and high-yield bonds is 3.00% and 3.40%, respectively.

Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle fund holdings can be found on the fund pages linked above.

Sources: Bloomberg and JP Morgan as of 3/11/24.

Yield as of:
Mar 15, 2023
High-Yield Bonds
Investment-Grade Corporates
Last Week
Prior Week
Start of the Year
Option Adjusted Spread as of:
Mar 15, 2023
High-Yield Bonds
Investment-Grade Corporates
Last Week
302 bps
480 bps
84 bps
Prior Week
314 bps
484 bps
89 bps
Start of the Year
323 bps
501 bps
93 bps
Prices as of:
Mar 15, 2023
High-Yield Bonds
Investment-Grade Corporates
Last Week
Prior Week
Start of the Year

*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.

Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.

Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.

Investing involves risk. Principal loss is possible.

Foreside Financial Services, LLC, distributor.

Scroll horizontally to view tables
Please Upgrade Your Browser.

Unfortunately, Internet Explorer is an outdated browser and we do not support it. To have the best browsing experience, please upgrade to Google Chrome, Firefox or Safari.