High Yield Morning Update

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.

The HY 19 Index (Markit CDX North America High Yield Index) is composed of 100 non-investment grade entities, with all entities domiciled in North America.  This index rolls every six months, in March and September.
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