Capital IdeasTM

Investment insights from Capital Group

Categories
Fixed Income
Investment Grade Credit – taking stock
March 13, 2024
Download PDF

Investment grade (IG) credit markets have rallied strongly over the past year, particularly since the US Federal Reserve signalled in November its intention to start cutting rates. As a result, while yields for the IG credit index remain high, and well above long term averages, credit spreads are approaching historically tight levels.


Despite the tight spreads, yields remain high with levels of dispersion elevated at a country, sector and individual bond level.


Meanwhile, fundamentals continue to point to IG companies being in good health and demand for the asset class remains robust. These factors mean that, in our view, IG credit looks well placed to continue to deliver results with many of the best opportunities now likely to found at individual company level. 


Learn more about
Fixed Income
Bonds
Interest Rates

Our latest insights

RELATED INSIGHTS

Hear from our investment team.

Sign up now to get industry-leading insights and timely articles delivered to your inbox.

By providing your details you are agreeing to receive emails from Capital Group. All emails include an unsubscribe link and you may opt out at any time. For more information, please read the Capital Group Privacy Policy

Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.