CAM High Yield Weekly Insights
Fund Flows & Issuance: According to a Wells Fargo report, flows week to date were $1.8 billion and year to date flows stand at $48.2 billion. New issuance for the week was $8.0 billion and year to date issuance is at $348.7 billion.
(Bloomberg) High Yield Market Highlights
- Ligado Networks is slated to price its $3.85b junk bond sale today, dangling a record 17.5% coupon to lure investors as its seeks to refinance debt and avoid bankruptcy.
- The hiked interest rate is the biggest offered on a high-yield deal since at least 2002, according to data compiled by Bloomberg, and comes amid other sweetened terms
- U.S. junk bonds showed resilience amid falling equities Thursday
- Apollo Global Management Inc.’s Jim Zelter says there will be a new spike in defaults next year as some companies struggle to service the extra debt they took on during the pandemic
- Investor confidence in junk bonds was evident via the cash allocation to the asset class. High-yield retail funds reported an inflow of almost $2 billion for the week
- Risk assets have remained buoyant despite a lack of progress on stimulus and disappointing macro data, Barclays strategist Brad Rogoff wrote on Friday
- The junk bond index came under slight pressure, posting a loss of 0.26% and is headed for a modest weekly loss of 0.06%
- Yields jumped 13bps to close at 5.37%, the biggest increase in three weeks
- Spreads widened 10bps to close at +475bps, also the most widening in three weeks