The high yield market is opening flat this morning on very light volume headed in to the holiday weekend. Weekly fund flow data came in last night, showing less of an outflow that expected on strong flows in to actively managed funds offsetting some of the outflow from index-based ETFs. This is a shift we’ve talked about for a while now, and believe will continue to be the trend moving forward. For the week, AMG data reported outflows of $165 million, while EPFR reported outflows of $304 million. Three new deals came yesterday in a trio of drive-bys for proceeds of $875mm. We’re waiting on one deal to price this morning, after which the rest of the market will leave for the long weekend. This morning equities are flat, the HY19 Index is lower by 1/8 and high yield cash continues to trade with a firm tone.
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.