High Yield Morning Update

The weakness in equities, especially into yesterday’s close, did not spill over in to high yield, as the market continues to trade with a firm tone. The high yield primary calendar has slowed significantly with only one deal coming yesterday, and currently only three deals being marketed for this week. Leveraged loan issuance continues to dominate due to the current popularity of the CLO market, taking new issue volume from high yield. The J.P. Morgan conference is in day two in Florida, and continues to be the popular excuse for the lack of volume in the market as accounts are “unreachable.” This morning equities are bouncing after yesterday’s weak close, high yield credit (HY19 Credit Index) is up 1/16 and high yield cash bonds are flat to slightly better with a strong underlying tone.

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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