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Weekly Market Summary

Oct 30 to Nov 3, 2023

View Current Performance

Extra Credit*

  • In investment-grade credit, 2023 has seen $80 billion of rising stars and $17 billion of fallen angels year-to-date, continuing the post-COVID trend of ample rising stars and scant fallen angels.
  • The relatively meager fallen-angel number becomes even more notable considering that $10 billion was Nissan, which was downgraded to high yield in March and then returned to investment grade the following month. 
  • The past three years have had the lowest number of fallen angels since the three-year period ending  in 1998. After 2020 saw record volumes, there have been just $46 billion in fallen angels over the past three years, which is $8 billion more than the three-year period ending in 1998, when the BBB index was one-tenth its current size. This volume also constitutes just 1% of the BBB index, the lowest amount on record. By contrast, 2022’s $110 billion of rising stars was the highest on record, and this year’s $80 billion  puts 2023 on track for second highest.
  • The trailing 12-month default rates for bank loans and high-yield bonds, excluding distressed exchanges, finished the month at 1.90% and 1.32%, respectively, down from 2.24% and marginally higher from 1.29% from August. The long-term historical default rate for loans and high yield bonds is 3.1% and 3.2%, respectively.

Sources: Bloomberg and JP Morgan as of 10/31/23.

Yield as of:
Nov 3, 2023
High-Yield Bonds
Investment-Grade Corporates
Last Week
Prior Week
Start of the Year
Option Adjusted Spread as of:
Nov 3, 2023
High-Yield Bonds
Investment-Grade Corporates
Last Week
395 bps
532 bps
116 bps
Prior Week
434 bps
538 bps
118 bps
Start of the Year
469 bps
592 bps
121 bps
Prices as of:
Nov 3, 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.

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