All right. So, what do you make of the action that we saw yesterday. I think I want to start off with the small caps hitting another record yesterday.What does that say about the market right now and the fact that investors are going into small caps, what we thought was a catch-up trade, uh, looking for, I guess, gains. What What do you think they're looking for there. >> I I think it's great.You're looking for something cheaper than the mega cap tech, right. You're looking for something that hasn't moved u ...

Corporate credit is discussed in this article as we take a look at the iShares 5-10 Year Investment Grade Corporate Bond ETF (NASDAQ: IGIB ) . Instead of providing a directional view of the ETF, we decided to discuss IGIB from a neutral standpoint, withPearl Gray is a proprietary investment fund and independent market research firm. We primarily focus on Fixed-Income and Capital Flows. However, our Seeking Alpha readers can expect a cross-asset blend, extending to analysis of equity REITs (including Preferr ...

Summary of Corporate Credit Strategy and Market Overview Industry Overview - The document focuses on the **Corporate Credit** market, specifically **Investment Grade (IG)** and **High Yield (HY)** credit sectors in the US and Europe, as well as their performance metrics and trends as of July 31, 2025 [2][4][24]. Key Points and Arguments Performance Recap Across Asset Classes - The **S&P 500** index is at **6,339**, showing a **1Y return of 14.2%** and a **1M change of 8.6%** [8]. - **US IG Corporates** have a current spread of **76 basis points (bp)**, down from **119 bp** a year ago, indicating tightening conditions [9]. - **US HY Corporates** have a current spread of **278 bp**, down from **453 bp** a year ago, reflecting improved credit conditions [10]. Valuation Comparison - The **Investment Grade Index** has seen a decrease in spreads from **130 bp** in 2022 to **76 bp** currently, indicating a favorable environment for IG credit [56]. - **High Yield spreads** have also tightened, with current spreads at **278 bp**, down from **647 bp** a year ago, suggesting a recovery in the high yield market [10]. Corporate Credit Spreads - The **US IG Credit** market shows a current spread of **74 bp**, while the **CDX IG** index is at **47 bp**, both indicating a tightening trend [9]. - In Europe, the **iTraxx Main** index is at **51 bp**, reflecting a stable credit environment [9]. New Issuance Trends - In 2025 YTD, **Investment Grade issuance** totaled **$1,096.8 billion**, with **Financials** leading at **45%** of total issuance [66]. - **Consumer Staples** saw a significant increase in issuance by **110%** year-over-year, while **Healthcare** issuance decreased by **58%** [66]. Sector Performance - The **Financials** sector remains dominant in IG issuance, while **Information Technology** has seen a notable increase in issuance by **85%** year-over-year [66]. - **Utilities** and **Healthcare** sectors have shown declines in issuance, indicating sector-specific challenges [66]. Yield and Spread Analysis - Current yields for **US IG** are around **3.53%**, while **US HY** yields are at **5.91%**, reflecting the risk-return profile of these segments [13]. - The **spread differential** between **AAA** and **BBB** rated bonds is currently at **93 bp**, indicating a risk premium for lower-rated credits [30]. Important but Overlooked Content - The document highlights the **liquidity metrics** and **fund flows** into the corporate credit market, which are crucial for understanding market dynamics but may not be the primary focus of investors [7]. - The **fundamentals** section discusses the underlying economic conditions affecting credit quality, which is essential for assessing long-term investment risks [18]. Conclusion - The Corporate Credit market is experiencing tightening spreads and improved performance metrics, particularly in the IG sector. The trends in new issuance and sector performance indicate a recovery phase, although certain sectors like Healthcare face challenges. Investors should consider liquidity and fundamental factors when making investment decisions in this space.