High Yield Daily Update

The high yield markets are better today, just like all of last week.  Inflows are fueling the move higher, accompanying a tame 10-year Treasury yield where it continues to hold below 2.85%.  U.S high-yield mutual and exchange traded funds saw a $989 million net inflow for the week ended April 11, according to Lipper.

Given the recent economic announcements are coming in line with projections, including today’s retail sales numbers, this has taken much of the fear out of the market that the Fed was leaning toward four rate rises rather than three as forecast.  Oil traded at a 40 month high last week, which has helped that sector, as tech, telecom and heath care are the laggards.

Six-issue priced last week for only $2.92B in proceeds, but there was a lot going on in the world that kept companies on the sideline.  Still over a half dozen names are in que, but we expect that this market will remain patchy as participants keep an eye on the geopolitical landscape, trade tariff talk, interest rates and their need to work around the earnings black-out periods.

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