Welcome to our Corporate Bond Market Volatility analysis for February 2025.
Every quarter, we dive into our datasets to identify volatility in bond markets via the Cognitive Credit app. Why does Bond Volatility matter? Because volatility is an indicator of opportunity.
As our regular readers will already know, once a bond has made a significant price move in a short period of time, it is more likely to make that kind of move again.
Without further delay, here is our Volatility analysis for US & European markets for February 25.
Market Volatility: Nov 24 - Feb 25
We identify opportunities by a minimum 5 point move hurdle: If a bond moved through a 5 point range over the previous 5 closes, we classify that as a volatility event. All data used for this analysis is available via the Cognitive Credit web application in partnership with S&P Global.
Within that criteria, here’s the 10 biggest movers in US and European markets..
European Corporate Bond Markets
US Corporate Bond Markets
Recurring names
From the above tables, we note that recurring names from our last pieces include:
- Lumen (US)
- Walgreen Boots Alliance (US)
- Frontier Communications (US)
- Thames Water (EU)
- Heimstaden (EU)
As always, not every one of these opportunities will interest every type of investor - the opportunity set is quite diverse. Given these names met the criteria to trigger a volatility event again, it's clear that missing the first move doesn’t mean you’ve missed the opportunity. The big moves will - potentially - come again soon.
Why do price moves matter?
Why look at price moves that have already happened? Because, as we discovered in our original post, with volatility comes opportunity. A bond that triggers an event is 20x more likely to appear on our Volatility list again than a bond in our coverage universe that hasn’t.
With Cognitive Credit, you can conveniently track market volatility and stay current on as many names as you need. With ready-to-use, fully customizable financials, you can form your own view quickly and easily maintain it with instant earnings updates. And with built-in analytics, you can interrogate every metric, financial statement and instrument to enhance your understanding of an issuer.
Get access to the financials for these names
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