Investment grade corporate bonds have generally moved alongside the stock market throughout the bull market. In recent days, however, investment grade corporates have moved lower even as stocks have risen. Below is a chart of the iShares iBoxx Investment Grade Corporate Bond Fund ETF (LQD) since the March lows. As shown, the ETF had been in a tight uptrend for months until just last week when it broke below its 50-day moving average. With the uptrend now broken, it will be interesting to see what, if any, impact this has on equity markets.
What made LQD JNK HYG all go down together? Was it the end of the quarter? Were more folks switching into equities?
Is there a good website that explains bonds and what makes them rise or fall?
Thanks
Posted by: Mark Stynsberg | October 16, 2009 at 01:55 PM