High-Yield Bond Issuance Was Mostly Dormant Last Week
Deals and flows analysis in the high-yield bond market
High-yield bond issuance activity was dormant last week as global markets were rattled by the Brexit referendum. Issuance is also expected to be at bay in the coming week due to volatility following Brexit and the long weekend for July 4th.
Interested in JNK? Don't miss the next report.
Receive e-mail alerts for new research on JNK
According to data from S&P Capital IQ/LCD, dollar-denominated high-yield debt amounting to $1.35 billion was issued in the week ending June 24, 2016. This was the lowest issuance since February 12, 2016. In the previous week, high-yield issuance came in at $5.4 billion. The number of transactions dove to just one last week from ten in the previous week.
Last week brought the total US dollar-denominated issuance of high-yield debt to $63.0 billion in 2016. This is 34.0% lower than in the corresponding period of 2015.
Mutual Funds such as the PIMCO High Yield Fund Class A (PHDAX) and the Fidelity High Income Fund (SPHIX) invest in junk bonds. High-yield debt is tracked by ETFs like the SPDR Barclays Capital High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
Only one deal for refinancing purposes
Only one deal, from AmeriGas Partners, was priced last week for refinancing purposes.
We’ll analyze the only deal priced last week and pricing trends in more detail in the next article in this series.