Credit’s $240 Billion Wipeout Makes Late-2023 Rally a Memory
- Traders temper expectations of aggressive central bank cuts
- January’s seasonally large supply also weighs on performance
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A sobering start to 2024 has wiped out hundreds of billions of dollars of value for credit markets caught in one of the worst cross-assets selloffs to greet a new year in decades.
The combined value of the high-grade and junk market has shrunk by about $240 billion to $13.6 trillion, the lowest since Dec. 13 according to data compiled by Bloomberg. The drop in market value was exacerbated by the rebalancing of bonds underlying the indexes at the end of last month.