The high-yield market eased Monday to open the new week as yields rose from three-year lows and spreads widened from the tightest level in 30-months with supply gaining momentum and stocks slowing down. The yield-to-worst/spread on the Bank of America High-Yield Index widened 4bps/6bps on the day to close at 5.69%/+366bps. The primary market ramped up the pace yesterday with six new deals being added to the forward calendar and three deals pricing for $1.3 billion in proceeds. New issues came from across the ratings spectrum and use of proceeds were all for refinancing/repaying debt other than one acquisition. WTI closed little changed at $53.20. Markets are little changed this morning as focus remains on earnings and a robust new issue calendar.
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.