The high-yield market was weaker for the third consecutive day as ETF related outflows accelerated, oil traded lower and equity markets plummeted. The yield and spread on the Bank of America high-Yield Index widened 10bps/6bps to 6.61%/+524bps, levels last seen in mid-August. Issuance was steady Tuesday as three more deals for $1.075 billion were added to the calendar, and two for $2.25 billion priced, despite the volatile market backdrop. WTI closed at $44.90, down 3%. This morning markets are opening with a firmer tone as oil and metal prices recover and global equities traded higher overnight. Expect the high-yield focus to remain on the calendar and situational trading while everyone continues to wait on the Fed.

The Bank of America Merrill Lynch High Yield Index monitors the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.  Index data sourced from Bloomberg. Yield referenced is the yield-to-worst and spread referenced is the spread-to-worst.