The high yield market was flat on Friday, with the Bloomberg Barclays US High Yield Index up 0.01% on the day, and we are opening the same today, as it is pretty quiet as usual here in the middle of summer. There were net outflows on Friday, and Lipper reported an inflow into high yield mutual and exchange traded funds for the week ending 7-18-18, with the lion’s share coming into ETFs.
Earnings season kicks off in full force over the next week, with many high yield issuers among those announcing, so we expect we will see a continued lack of new issuance supply. There was $3B issued last week and only ~$5.5B for the month which is the lightest July since 2008.
Oil is creeping toward $70/barrel again on President Trump and Iran’s strong talk and the rig count in the US fell by five last week.