Yields dropped and spreads tightened yesterday as oil rebounded and stocks traded flat on what was an overall quiet day for the markets. The yield-to-worst/spread on the Bank of America High-Yield Index tightened 10bps/7bps on the day to close at 5.88%/+394 bps vs YTD lows of 5.57% and +355bps at the start of this month. The primary market remains on the slow side with just two deals pricing WTD for $2 billion in proceeds. Despite the slow week, MTD issuance volume of $36.835 billion makes it the busiest month since April 2014. WTI closed the day at $49.51, up 2.36%. The US 10yr Treasury note closed at a yield of 2.38% vs 2.42% the prior day. This morning high yield continues to trade with a positive tone amid better oil and flat stocks and treasury markets. Several drive-by deals have been announced this morning with pricing expected this afternoon and tomorrow.
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.