The high-yield market strengthened yesterday as both oil and equities traded higher and funds continued to flow in to the asset class. The yield to worst and spread on the Bank of America High-Yield Index tightened 3bps/4bps to close the day at 6.26%/+438bps respectively. The primary market remained active with four deals pricing for $1.5 billion in proceeds, bringing the week’s volume total to $7.5 billion. Lipper reported more than $2 billion into high-yield funds for the week. This morning oil continues to rise, trading steadily above $50 while the high-yield market opens with a firm tone again.

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.