Moving slightly down in quality as loans deliver steady performance.
Market volatility in the first half of 2016 has given way to a sharp rally in CMBS spreads and resurgence in CMBS issuance.
Despite positive fundamentals, the second quarter saw a significant decrease in lender appetite.
The energy sector currently offers the best potential total return upside in the high-yield space.
Relatively high yields and abundant supply entice global fixed-income investors.
Talk of tax reform will likely create uncertainty in the otherwise-robust municipal bond market.
Constructive themes of improving fundamentals and limited supply remain firmly in place.
Investors from outside of the United States seeking higher relative yields will likely continue to support Treasurys as global rates languish.
Despite the selloff following Brexit, high-yield bonds and bank loans still turned in impressive quarterly returns, but recovery rates bear watching.
Energy yields look more attractive than other sectors, as the worst of the oil bear market draws to an end.
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