For Q1 2016, it was the best of times, it was the worst of times. For the first 6 weeks of the year through February 11th, risk aversion ruled the markets. Global stock markets plunged sharply, with the MSCI ACWI ex-USA NR USD Index down -12.5% from year-end 2015 levels. Leadership changed from the pattern established in 2015 with Emerging Markets and the resource-rich Canadian and Australian stock markets outperforming the largest developed regions of Europe and Japan. Crude oil prices dropped by over 20% which put significant pressure on high yield bonds generally and energy sector credits in particular. The BofA Merrill Lynch U.S. Cash Pay High Yield Index lost over -5% in year-to-date total return through February 11th.
Topics: Market Data