iBoxx Yield Select Quarterly Update Q3 2021

iBoxx Yield Select is an index framework to capture the credit-carry factor in corporate bond markets. Yield Select strategies use sampling techniques to target portfolio yield-enhancement subject to investors' tolerances for risk versus the market benchmark.

Over the quarter, credit spreads were largely range bound. However, there was a shift in the trajectory of expected US interest rates. In August, US rates started to reverse their downtrend and gapped considerably higher in September after the Federal Reserve meeting.

Looking at the monthly returns over Q3, the Benchmark, the Carry Benchmark and the Yield Select strategies delivered their best over July and their worst in September. Whilst returns for all strategies exceeded the Benchmark, the Yield Select strategies outperformed the Carry Benchmark.

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Posted 07 October 2021 by Rahul Sharma, Director - Indices, IHS Markit and

Wilson Mak, Analyst - Indices, IHS Markit

IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

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