The high yield market traded higher on Friday despite Lipper reporting big outflows for high yield mutual and exchange traded funds for the week ending August 16th. Only one new-issue priced on Friday and it looks like only one is on the docket, with that one said to already be 3x oversubscribed. In the secondary market, high yield bonds are not all melting up like we have seen in recent history, as some credits are getting beaten up based on industry concerns or earnings misses. We are seeing the market opening flat with the exception of the longer Treasuries, with the US 10-year Treasury touching 2.18%, as everyone is outside waiting for the eclipse. Unfortunately we have June Gloom here in Santa Barbara so we won’t see the sun until late this morning.
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.