President Donald Trump and his Democratic rival Joe Biden both still have possible paths to victory, but investors are currently betting on a Biden win, with the Republican party keeping a hold of the Senate, said Kevin Giddis, head of fixed income at Raymond James.
Markit’s North American High-Yield CDX Index – which tracks the cost to insure high-yield corporate debt and is a proxy for the junk market – rose in price to 104.83%, as investors bought the contract. Spreads on Markit’s North American Investment Grade CDX Index narrowed to 57.61 basis points, as investors there also bet on a fall in defaults.
