In October, corporate credit proved to be quite volatile. While the performance in the asset class was mixed, corporate bonds, fenced by doubts revolving around the rapid rise in Covid-19 cases and the need to re-impose movement restrictions, held up relatively well, overall. The much anticipated U.S. presidential election, also weighed on the markets, with expectations of a larger government stimulus, backed by then-presidential candidate Joe Biden boosting U.S. borrowing costs.
Credit spreads, across maturity buckets and sectors, factoring the two major topics for the month also reacted, with geographical divergence seen within the IG and HY space.

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