Many sectors within the fixed income markets enjoyed gains as interest rates stayed relatively steady and bond spreads tightened as investors grew more comfortable with the scope and trajectory of the current economic recovery.
Despite a robust new issue calendar in the middle of a usually weak season for deals, corporate bonds managed to gain a healthy 1.5%, easily besting Treasuries and agency mortgages.
For the quarter, the Bloomberg Barclays Aggregate Index gained 0.62%, while the Bloomberg Barclays Intermediate Govt./Credit Index returned a similar 0.61%.
CMBS and ABS did well for the Aggregate Index as evidenced below and we are happy to report that these same sectors, along with non-agency and taxable municipal bonds, helped deliver favorable performance for our investment grade portfolios.
Read the full newsletter here: INVESTMENT OUTLOOK Q3 2020