The yield spread between the S&P/DB ORBIT Credit Index and the S&P/DB ORBIT Sovereign and Quasi-Sovereign Index surged from 120bps at the end of last year to 159bps. It seems that while the supply remains robust, the chase for yield continues to support the market.
Exhibit 2: The Total Return Performance of the S&P/DB ORBIT Index Family
This article was written by Michele Leung, associate director, fixed income indices, S&P Dow Jones Indices.
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