Investment insights from Capital Group
1. As at 30 April 2020. Source: Bloomberg, US Federal Reserve
2. As at 31 March 2020. Sources: Capital Group, Refinitiv Datastream
3. A credit spread is the difference in yield (the expected return on an investment over a particular period of time) between a government bond and another debt security of the same maturity but different credit quality. Credit spreads are measured in basis points, with a 1% difference in yield equal to a spread of 100 basis points. Credit spreads typically measure the perceived riskiness of a corporate bond relative to a safer investment, typically the equivalent government bond – the wider the spread the riskier the corporate bond. A period of tightening reflects a decrease in this perceived credit riskiness.
Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.