CAM High Yield Weekly Insights
Fund Flows & Issuance: According to a Wells Fargo report, flows week to date were $0.7 billion and year to date flows stand at -$7.1 billion. New issuance for the week was $7.2 billion and year to date issuance is at $286.0 billion.
(Bloomberg) High Yield Market Highlights
- The U.S. junk-bond market’s riskiest slice of debt saw yields plunge to the lowest level on record Thursday as a fierce rally continued to roar full steam ahead across the high-yield ratings spectrum. CCC yields fell to 5.60% while spreads tightened to +456bps.
- Broader index yields dropped to 3.72% to reach a new low for the fifth time in about five months, while spreads rallied to +265bps, the lowest since June 21, 2007
- Single B yields closed at 4.04%, also a record, while spreads were +292bps, the tightest in about 14 years
- The primary market is expected to be quiet Friday as borrowers wait to strike until after the Fourth of July weekend
- Retail investor confidence was evident in fund-flow data as there was an inflow of $700mm for the week, which was the biggest influx since April
- S. equity futures have climbed ahead of key jobs data while oil was steady after infighting within OPEC+ delayed a decision on raising output levels