Markit has published the October 2015 edition of the Global fixed income focus. The publication includes a monthly market update and special reports that leverage the breadth and depth of Markit's pricing and analytical datasets across the various fixed income markets.

Here are the highlights from this month's publication:

• A review of the daily number of uniquely traded and quoted US corporate bonds determined that only 359 bonds traded every day (249 business days in total) from November 2014 to October 2015, with 50% of the traded bonds trading only 15 days or less during that period.
• An analysis of the 20-day moving average spread correlations between BB CDS sectors and BB loan sectors determined that the correlations were somewhat cyclical. Data indicates that there were multiple instances where BB loan spreads widened shortly after periods with very negative correlations between CDS and loans
• The leveraged loan market had a somewhat negative tone for most of October, albeit on relatively light trading volumes, with a continued focus on higher quality names. The Markit iBoxx USD Leveraged Loan index (MiLLi) returned -0.13% in October, bringing the sector to +0.99% year-to-date. Outside of government bonds, it was the worst USD denominated performer in October.
• CDS sector spreads were generally tighter across the globe in October, after North America and Europe both reached new 12-month wide levels in September.
• Corporate bonds fell back into favour in October, after September's broad based sell-off, driving the Markit iBoxx Corporate Bond indices month-over-month total returns higher across all three main issuing currencies.
• The municipal bond market continued to focus on the FOMC for guidance on rates going into 2016, while also digesting the news out of Puerto Rico and Illinois.
• Securitised Products generally had a negative month, with the exception of some agency MBS, which could see some benefits from the increasing likelihood of a Fed rate increase in December.
  

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Chris Fenske, Director, Head of Fixed Income Pricing Research
Tel: +1 212 205 7142
chris.fenske@markit.com

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.