Corporate Bonds Stage A Comeback

Many investors have been waiting for the corporate bond market to show signs of life before getting back into more risky assets.  The action in two ETFs that track investment grade and high yield corporates in recent weeks shows that this section of the market has indeed received a spark.  As shown below, investment grade corporates (LQD) have now moved all the way back up to levels seen prior to their big selloff in mid-September.  And even high-yield corporates have bounced quite a bit off of their lows in recent days.  The stock market has really played second fiddle to the credit markets during this downturn.  From the looks of these two ETFs, the credit markets have finally gotten some positive momentum.