The high yield market was better again yesterday, despite the weakness in the equity markets, as the Bank of America Merrill Lynch High Yield Master index returned 0.31% yesterday and has returned 2.04% MTD. The CCC space continues to lead the high yield market higher, returning 0.42% in yesterday’s session bringing the MTD total to 3.44%, outpacing the total BAML Master Index. The high yield space was helped by a couple of M&A transactions in the energy space, boosting prices.1
We’re opening today pretty flat. It feels like high yield accounts still have some cash (plus inflows and interest payments hitting yesterday) and are beginning to gain some comfort with the health of the U.S. economy and a potential resolution in Europe, at least somewhere in the not-to-distant future. High Yield flows remained positive on 10/14 as EPFR reported a one day inflow of $368mm. The $668mm inflow reported on 10/13 was a record one day inflow since EPFR started tracking daily flows.
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