High Yield Daily Update

As we start a new week, the 2-year US Treasury yield has hit 1.54% and if it closes above this level that will be the highest close since September of 2008.  On the long side, the 10-year Treasury yield has slipped back to 2.30% and many are expecting a future inverted yield curve.  Against this backdrop, we have seen some attractive discounts in the floating rate loan market and are taking advantage of these.  Within the high yield bond market, only one new-issue priced yesterday but there are eight on the forward calendar as issuance took a breather as the earnings season kicked off this week, forcing issuers to wait for the blackout period to end.

Oil is moving slightly higher again as the Iraq versus Kurdistan tensions are escalating, spooking the market a bit as they feel the Kirkuk field could be in jeopardy.  Import/export prices came in better than expected and US manufacturing is shrugging off the hurricanes and churning higher again.  Lastly, what does it say about the future of retail bricks and mortar when Nordstrom pulled the plug on going private, as there was not enough interest from private equity and banks willing to back this.

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