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Why the fixed income market is unusually active

Senior Credit Analyst

Bonds: Last gasp before the August calm (Part 1 of 5)

The fixed-income market generally goes to sleep during August as dealmakers go on vacation

Issuance volume gauges the activity in the primary bond markets (BND). The volume last week was strong—as strong as the previous week—though it’s likely that going into August, this was the last strong week.

  • In the corporate investment-grade market (BND), volumes marked the third busiest week of the year. Click here to read about the investment-grade market, which offers investment-grade quality and a medium interest rate sensitivity
  • In the high yield bond market (JNK), volumes were in line with last week and fund flows bounced back to positive ground. Click here to read about the high yield bond market, which may be living its last rally of the year.
  • In the leveraged loan market (BKLN), refinancing activity pushed volumes higher, supported by continued inflows. Click here to read about the leveraged loan market, which offers an alternative to bonds with little interest rate sensitivity.

Continue to Part 2: Are investors feeling overly cozy?

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