High yield continued to tightened yesterday as oil traded back up above $50 a barrel and equities held steady. The yield to worst on the Bank of America High Yield Index tightened 8bps to 5.80%. The primary market was busy with eight deals pricing for $3.88b in proceeds, led by Six Flags (SIX) and Charter (CHTR). Lipper reported a modest outflow of $248m from mutual and exchange traded funds for the week ended 3/29, after estimating withdrawals of $675m earlier in the week. Overnight and into this morning, global stocks look poised to end a blockbuster quarter with a muted tone. Focus is now shifting towards Q2 and whether political developments in the US and Europe will cloud the brightening global economic outlook. High yield is opening flat to slightly higher and quiet.
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.