Financial conditions are a collection of asset prices and interest rates that have the potential to affect the real economy.
Last week, the labor data showed a weakening labor market, but didn't give clear signals for the Fed to cut rates by 50 bp at the next FOMC.
Over the past 20 years, the corporate bond market has experienced an evolution driven by cycles, regulatory shifts, and changing demand.
Until recently, the prevailing market narrative since October was that the Fed was in a "pivot" to eventual rate cuts.
