Bill O’Neill, Senior Portfolio Manager, offered MarketWatch his views on why investment-grade corporate bonds surged as Americans waited for U.S. 2020 election results over the course of a week. Describing it as a “relief rally,” Bill said U.S. Treasurys and major stock indexes also ticked upward over the course of the week because the market was initially fearful of a “blue wave” across the presidential and congressional races. As prospects for Democrats to sweep the White House and the Senate dimmed as the week went on, Bill explained, markets reacted positively because a larger fiscal spending package favored by the Democrats seemed less imminent.
MarketWatch: Corporate debt market sees ‘relief rally’ amid uncertain U.S. election week
November 6, 2020
Original article by Joy Wiltermuth