There were two main driving forces impacting the fixed income markets during the fourth quarter of 1999. The first force was generally rising yields available to fixed income investors. This most recent move by the Fed brought its tightening moves to a total of 75 basis points for the year. The second force that acted on the fixed income markets during the fourth quarter was spread tightening. Single-B rated bonds narrowed their spread over Treasuries from about 574 basis points to their current level of 485 basis points.
Past performance is no guarantee of future results.
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