Fund flows maintained a solid pace even after the holidays, setting up the high yield market for a strong Q1.
The S&P/LSTA Leveraged Loan Index is one of the main benchmarks for the leveraged loan market. It tracks the performance of the loans over $50m with margins equal to or higher than…
The leveraged loan market is composed of all the Term Loan B loans rated BB+ or lower. Similarly, the high yield market is composed of all corporate bonds rated BB+ or lower. Unlike most high yield bonds,…
The high yield market had a 16% return in 2012, but changed market dynamics will prevent this from reoccurring in 2013
The high yield market had outstanding returns in 2012 that are unlikely to repeat in 2013 given different market dynamics.
The minimal new issuance and continued fund outflows pose concerns for the high yield market
Continued fund outflows signal a lack of attractiveness in the high yield market
Rates across the fixed income markets are at all-time lows, therefore there is limited upside left
November has had more loan deals flexed up than flexed down, potentially signalling a slowdown
Break prices have widened in recent months, another positive for the high yield market
The share of cov-lite loan issuances has incresed in recent months, signaling a very strong loan market
Despite the short week, leveraged loan issuances and fund flows remained relatived strong.
Leveraged loan issuance maintained a decent pace given the short week, with 13 deals pricing
Second lien loan issuance has accelerated throughout the year, confirming strength in the loan market
Bond yields have remained at the all time lows reached in August
A high turnover rate in an ETF can cause trading costs that erode away any lower management fee savings
High yield market rally maintains momentum, but fund flows remain weak
The recent PIK bond issuances may be a sign of an overheated bond market
HYG, the high yield bond ETF, is trading near the fund’s aggregate call price, implying limited upside
The leveraged loan market rally continues; loan terms getting overly aggressive