Insight
Corporate Bond Market Insight - The Impact of a Stretched-Out Shutdown on Corporates
November 12, 2025
What were the key takeaways from last month’s numbers? Our corporate bond specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for fixed income investors.
Key takeaways from the latest edition:
The government shutdown shows few signs of resolving as it stretches into its second month, which means there was an almost complete absence of official economic data.
Private sector economists estimate that GDP could reduce between 0.1% - 0.2% each week while the shutdown lasts. The damage to fourth-quarter GDP will increase as the shutdown extends.
The Fed reduced the federal funds rate 25 bps—the second consecutive rate cut. It also announced the December 1 end of its quantitative tightening.
Private sources of data, like the Automatic Data Processing National Employment Report, provided insight where official data lacked. It suggests that private employment has weakened again.
