NYLI MacKay High Income ETF Q1 2025 Commentary

2025-06-30 12:50:00 ET

Market Review

? Despite a soft month in March and growing concerns over a diminishing growth outlook, the U.S. high yield market closed the first quarter up 0.95%, benefiting from economic momentum that carried over from 2024. From a broad view, the quarter opened with market participants adjusting to expectations of a more gradual monetary easing cycle in the U.S., and with investors seeking clarity on fiscal policy uncertainties under the new Trump administration. As the quarter progressed, concerns around tariff policies, higher inflation, and a potential slowdown in the road ahead increased, resulting in heightened volatility across markets. In the quarter, the Federal Reserve reinforced their cautious stance on monetary policy when it opted to leave rates unchanged at its March meeting. The gains captured across credit markets in Q1 were driven by a moderate decline in interest rates. U.S. Treasury yields fell by an average of 33 basis points across the curve. Credit markets held in well relative to equity markets, which have retreated back to September 2024 levels....

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