Chart Library

BANK LOANS
May 2023

Historical Returns, Yields After the Fed Pause​d Interest-Rate Hikes

Federal Reserve’s interest-rate hiking cycle. However, long-duration fixed income is in a different place than the last time the central bank pumped the breaks. On top of that, bank loans—the asset class that has traditionally seen outflows once the Fed has stopped hiking rates—also looks different than the last time the Fed took a pause.

Download PDF
Performance After a Fed Pause in Interest-Rate Hikes
Historical Returns, Yields After the Fed Pause​d Interest-Rate Hikes
Source:
Morningstar 5/5/23

Long investment-grade corporate bonds are represented by Bloomberg Long US Corporate Index. Long high-yield corporate bonds are represented by the Bloomberg US High Yield Long Index. Long U.S. Treasury Bonds are represented by the Bloomberg US Treasury Long Index. Bank loans are represented by the Credit Suisse Leverage Loan Index.

Filter categories:
Showing
0
results
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Active tag
YIELDS
,
April 2023
Bank Loans Have Outperformed Longer-Duration Asset Classes Since July 2022
View chart

Longer Duration, Smaller Yield so far in 2023

Over the past 12 months, longer-duration asset classes have seen $99.4 billion in net inflows vs. $22.8 billion in outflows from shorter-duration categories.1 To date, this move to duration—sparked largely by the potential ending of rate hikes by the Fed—has seen bank-loan funds outperform long government bond, intermediate core bond and intermediate government bond funds in the second half of 2022, all of 2022 and 2023 year-to-date.

Download PDF
YIELDS
,
March 2023
Yield to Worst Has Increased Significantly Since 2021
View chart

Yields Across Corporate Credit Have Been Rising

With yields across corporate credit currently far higher than at the end of 2021, investors may now assess whether additional credit risk has been worth the extra pickup in yield.

Download PDF
BANK LOANS
,
February 2023
The 10 Worst Performance Years per Fixed-Income Asset Class
View chart

How Have Bank Loans Performed in Down Years?

In 2022, investors had few places to hide amid one of the worst market years on record. But one fixed-income asset class performed far better than others: Bank loans.

Download PDF
CORPORATE BONDS
,
February 2023
Duration and Yield for Various Fixed-Income Asset Classes
View chart

Duration, Yield and Fed Expectations

Some investors have started to add duration to their fixed-income investments, expecting a Federal Reserve pause in interest-rate hikes. But given the current curve inversion across various areas of fixed income, investors have been giving up yield for the sake of adding duration. With the Fed still reiterating a data-dependent approach, investors may be caught off guard if the Fed continues to raise rates without a pause.

Download PDF
BANK LOANS
,
February 2023
Effective Yields: Average Bank Loan Fund vs. Credit Suisse Leveraged Loan Index
View chart

Is it Time to Revisit Bank Loans?

In 2022, investors had few places to hide amid one of the worst market years on record. But one fixed-income asset class performed far better than others: Bank loans.

Download PDF
CORPORATE BONDS
,
February 2023
Short-Term vs. Intermediate Core Bond Performance over Past 10 Years
View chart

Short-Term vs. Intermediate Core Bonds

Fixed-income investors in intermediate core bond funds gave back 105% and 71% of their 5-year and 10-year return, respectively, in 2022. Investors who added exposure to short-term bond funds fared better; the average short-term bond fund finished 2022 with a return of -5.22% vs. -13.32% for the average intermediate core bond fund. This was the greatest margin of outperformance for short-term bond funds over intermediate core bond funds since the inception of the Morningstar Short Term Bond Category.

Download PDF
🤷 No results found. Please try different keywords.

Subscribe to receive industry news and insights

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.

Upgrade