After a near-collapse in October, the corporate bond market is back on steady ground while continuing to deliver an attractive yield.
After 6 straight quarters of declining earnings for the S&P 500, a downturn of 3 years in length is a real possibility. To find another large downturn that lasted for that long, go all the way back to the 1930s.
State Street recently launched the SPDR Barclays Capital Intermediate Term Credit Bond ETF (Ticker: ITR). The new ETF provides investors with precise, low-cost access to intermediate term bonds including investment grade corporate and non-corporate bonds with a maturity of 1 to 10 years.
Monday’s annoucement that Cisco successfully raised $4 billion at low interest rates is another sign that the credit markets are beginning to unfreeze.