Credit Markets Jump As U.S. Election Results Come In

Exchange-traded funds tracking credit markets moved in step with Wall Street’s main indexes, which were all recently up more than 2%. The iShares iBoxx High Yield Corporate Bond ETF <HYG.P> was last up 0.93% to $85.23 with the equivalent high-grade credit ETF – the iShares iBoxx Investment Grade Corporate Bond ETF <LQD.P> – up 1.45% to $136.04.

President Donald Trump and his Democratic rival Joe Biden both still have possible paths to victory, but investors – and betting markets – are currently wagering on a Biden win, with the Republican Party keeping a hold of the Senate.

The rally in credit reflects bets that a potentially divided government will still pass fiscal stimulus, though the amount may be smaller than was expected in a broad Democratic victory, investors said.