Bond markets tend to signal underlying market stress before equities do. SanJac Alpha CIO Andrew Wells is closely watching closely watching long-term Treasury yields and credit spreads for signs that market conditions may be shifting.
Credit risk – the risk a borrower poses to lenders of failing to pay back money loaned to them. Junk bonds – bonds that carry a higher risk of default. Bond Spreads – Andy difference in yield between two bonds. Credit Spreads – the difference between the yields of two bonds that mature at the same time but are rated at different credit qualities. Basis point – standard measure for interest rates and other percentages in finance. Holdings subject to change, current holdings can be found on the respective fund pages SJCP and SJLD.
