Stock market today: S&P 500 closes flat as ’Mag 7’ earnings, Fed decision loom
- Bank of America (NYSE:BAC) increases its U.S. high-yield bond default rate estimate for the next year to 5.5% from 4.25% due to volatility and tighter financial conditions.
- Estimate is now 225 basis points above that in earlier 2018, strategists led by Oleg Melentyev wrote in a Jan. 2 note.
- "Recent volatility, coupled with deterioration in investor sentiment, and tightening in financial conditions have increased the probability of a cyclical turn by a material extent"; a cyclical turn isn't yet "inevitable," they wrote.
- Source: Bloomberg First Word.
- ETFs: HYG, JNK, DHY, HIX, EAD, PHT, HYT, HYLD, JQC, ACP, ANGL, CIK, MCI, DSU, SJB, KIO, NHS, CIF, ARDC, IVH, GGM, AIF, MPV
- Now read: Yield Hunting Power Rankings Report - December
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