Global risk markets traded with a positive tone Monday on expectations that Centrist Macron will defeat Eurosceptic Le Pen in French’s final presidential election, securing a victory for the global status quo. High yield traded at a six week high, pushing the yield to worst and spread on the Bank of America High-Yield Index tighter by 9bps each to close at 5.68% and +386bps, respectively. While no new deals priced Monday, four new deals for $1.55 billion were added to the calendar. In commodity markets, both WTI and crude closed lower on expectations of growing US supply. WTI closed at $49.23, down 0.8%. This morning markets are opening with a strong tone again, with US equity futures and WTI trading higher, while high yield is generically stronger by ¼ of a point. The focus will shift away from macro to micro this week and moving forward as Q1 earnings season kicks into full gear.
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.