The high yield fixed income sector continued its outperformance in the first quarter of 2017. Intermediate municipal bonds, longer dated municipals, corporate bonds and treasuries/agencies all gained after a particularly volatile 4Q 2016.
Longer dated municipals, investment grade corporates, and U.S. government securities declined in the third quarter but remained positive for the year. Intermediate municipals were flat while high yield holdings continued to strengthen.
Tax‐free municipals performed well in 2015 followed by investment grade corporates and treasury/agency paper. High yield debt ended the year in negative territory after further declines in the fourth quarter.