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.
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.