The high-yield market improved on very thin volume over the past week heading into the Christmas holiday as oil continued to hold above $52 and market sentiment remained constructive. The yield to worst and spread on the Bank of America High-Yield Index (BAML) tightened 11bps/22bps over the week to close at 6.18%/+416bps, respectively. Oil finished the week slightly higher closing at $53.02.
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Lipper reported a small weekly outflow from mutual and exchange traded funds of $19 million for the week ended Dec 21st, coming on the heels of the year’s 4th largest inflow the prior week of $3.75 billion. Just one deal priced over the week for $350 million for Baffinland Iron Mines, a deal that they have been working to bring to market for several weeks now. For December, 37 deals for $19.19 billion will be the final tally, good enough for the busiest December volume since 2013 and the busiest month this quarter. The final volume for 2016 will come in at 363 deals for $229.976 billion in proceeds.