Global high yield markets had a modestly weak quarter overall, with spreads widening by 26 bps over the period. Total returns (in $ terms) were negative at -0.35%.
Even as the global economic recovery continues and with strong 2Q corporate earnings, risk-off sentiment connected to the regulatory crackdowns in China, more hawkish than expected outcomes at the Fed and the Bank of England meetings, and concerns around high inflation readings all led to negative risk sentiment over the quarter.
Emerging market HY underperformed the most due to developments in China, sparked by Evergrande - the second largest property developer in China - missing a coupon payment near the end of September. Even though market participants expect that its likely restructuring would lead to volatility and weakness in China’s HY property sector, spillover effects to broader high yield markets are expected to be quite limited, especially regarding any financial or portfolio contagion.
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-800-997-7327, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the State Street Global Advisor Funds.
THIS SITE IS INTENDED FOR U.S. INVESTORS ONLY.
No Offer/Local Restrictions
Nothing contained in or on the Site should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. SSGA Intermediary Business offers a number of products and services designed specifically for various categories of investors. Not all products will be available to all investors. The information provided on the Site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
All persons and entities accessing the Site do so on their own initiative and are responsible for compliance with applicable local laws and regulations. The Site is not directed to any person in any jurisdiction where the publication or availability of the Site is prohibited, by reason of that person's nationality, residence or otherwise. Persons under these restrictions must not access the Site.
Information for Non-U.S. Investors:
The products and services described on this web site are intended to be made available only to persons in the United States, and the information on this web site is only for such persons. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.