Global corporate bond yields ended the month little changed, though investment grade credit outperformed government bonds. Both the Fed and the ECB responded to weak economic momentum with rate cuts following their September meetings. The ECB also unveiled a new quantitative easing programme and announced measures to improve lending terms for eurozone banks. The US-China trade war continued to hold back risk markets, given the concerns over its potential impact on the global economic outlook. There were also the continuing worries over the prospect of a no-deal Brexit. Italian bonds were boosted by the installation of a more pro-EU Italian coalition government, backed by the country’s centre-left Democratic party. Corporate bond issuance was buoyant, with Apple and Disney each issuing around $7bn of debt.
*Source: Lipper to 30-Sep-2019, total return. Indices rebased to zero at at 30-Aug-2019.