The high-yield market was flat yesterday amid outflows from retail funds and unsteady oil, while equities rallied on weak economic data across the board, weakening the case for a September rate hike. The yield to worst and spread on the Bank of America High-Yield Index was unchanged at 6.57%/+526bps, respectively. Issuance was relentless yesterday with four more deals for $1.6 billion pricing on the day, taking the week’s total to $6.3 billion in issuance, even as the market has traded lower. Retail funds reported their largest outflow in six weeks totaling $2.453 billion as rate hike concerns forced some money to the sideline. WTI (West Texas Intermediate) closed at $43.91, up 0.76% on the day. This morning we’re opening flat to slightly lower as oil trades off and the market begins to shift its focus to the upcoming policy meetings from both the Bank of Japan and 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.