Yesterday we saw high yield bonds continue their slow grind higher as the asset class is still attracting new money looking for cash flow/yield. Much of the activity remains focused on trading the new deals coming to market, but secondary buy pressure still outweighs sell pressure by a healthy margin, despite some feeling that the market has tightened too far. Two deals priced on the day, both with 4% handle yields, totaling just over $2 billion in proceeds, and both of which traded up a point on the break. One deal is expected to price this afternoon, and the forward calendar remains full. This morning stocks are opening mixed, the HY19 High-Yield synthetic index is down 1/8 of a point and high yield cash bonds are basically unchanged, but better bid in general.

The HY 19 Index (Markit CDX North America High Yield Index) is composed of 100 non-investment grade entities, with all entities domiciled in North America.  This index rolls every six months, in March and September.