The recent trend of money leaving high yield funds is continuing to start the week as the index ETF’s are hitting the market with sell lists this morning, putting pressure on secondary levels. Cash levels across high-yield accounts remains higher than average, but no one is stepping up in a meaningful way at the moment, and buying remains selective. Equities, Credit Indices (HY19 Index) and cash bonds are all opening weaker this morning. Only one new high yield deal priced on Friday due to the storm hitting the east coast and many market participants heading home early. We should see five to six deals price by this afternoon as the primary market remains the main focus for high yield at the moment.
Although information and analysis contained herein has been obtained from sources Peritus I Asset Management, LLC believes to be reliable, its accuracy and completeness cannot be guaranteed. This report is for informational purposes only. Any recommendation made in this report may not be suitable for all investors. As with all investments, investing in high yield corporate bonds and loans and other fixed income, equity, and fund securities involves various risks and uncertainties, as well as the potential for loss. High yield bonds are lower rated bonds and involve a greater degree of risk versus investment grade bonds in return for the higher yield potential. As such, securities rated below investment grade generally entail greater credit, market, issuer, and liquidity risk than investment grade securities. Interest rate risk may also occur when interest rates rise. Past performance is not an indication or guarantee of future results. The index returns and other statistics are provided for purposes of comparison and information, however an investment cannot be made in an index.