High Yield Daily Update

High yield bonds are generally better today despite weakness in equities.  The Bloomberg Barclays US Corporate High Yield Index was down -0.10% yesterday.1  There was a slight net outflow from high yield bonds yesterday with active mutual funds seeing an outflow while high yield ETFs saw an inflow.  Four high yield new-issues priced yesterday for ~$2.1B in proceeds and just three are in que.  April’s high yield bond issuance totaled $20.8B which is down from $28.4B in March and below the historical average issuance we’ve seen in April of $33B.2

Treasury rates are flat today ahead of the conclusion of the two day Fed meeting.  It will be interesting to see their language on growth now that the economy hit the 2% growth target.  ADP reported a slightly better jobs number and Friday has the government’s jobs numbers; we are keeping an eye on the wage number.

1  Bloomberg Barclays U.S. Corporate High Yield Index covers the universe of fixed rate, non-investment grade debt (source Barclays Capital).
2  Jantzen, Nelson, CFA and Peter Acciavatti, “JPM High-Yield and Leverage Loan Morning Intelligence,” J.P. Morgan North American Credit Research, 5/2/18, https://markets.jpmorgan.com.
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