So far in August, ~$95.5 billion worth of new high-grade issuance has been made. Issuance has slowed further leading up to the Labor Day long weekend.
The US Treasury auctioned five-year TIPS worth $14 billion on August 18. The overall demand for the securities fell 2.1% from the previous auction.
According to Lipper, in the week ended August 10, 2016, leveraged loan funds saw inflows of $96.4 million. In the previous week, inflows were $60.4 million.
Leveraged loan issuance was down last week. According to S&P Capital IQ/LCD, US leveraged loans saw an allocation of $11.1 billion of dollar-denominated senior loans.
Investor flows into high-yield bond funds last week were positive after two consecutive weeks of negative flows.
Hospital Corporation of America (HCA) issued junk bonds worth $1.2 billion on August 8, 2016. The bonds will mature on February 15, 2027.
High-yield bond issuance was lower last week. There’s been a rush in the high-yield market since late summer, and $26.1 billion in junk bond issues have hit the Market over the past four weeks.
According to Lipper funds flow data, investment-grade bond funds saw net inflows of $2.52 billion during the week ending August 10.
Westpac Banking Corporation (WBK) issued Aa2/AA- rated high-grade bonds worth $5.0 billion via five parts on August 11, 2016.
Investment-grade corporate bonds worth $45.0 billion were issued in the primary market in the week ending August 12, 2016.
According to the Bloomberg US Treasury Bond Index, US government debt has returned 5.4% in 2016. Global investors are flocking to the US debt market (LQD) (AGG), primarily due to negative yields in Europe and Japan.
The US Treasury Department held its monthly 30-Year Treasury bonds auction worth $15 billion on August 11, 2016.
In the week ended August 3, 2016, leveraged loan funds saw inflows worth $60.4 million. In the previous week, leveraged loan funds had outflows of $15 million.
According to S&P Capital IQ/LCD, US leveraged loans saw an allocation of $18.4 billion worth of dollar-denominated senior loans in the week ended August 5, 2016.
Investor flows into high-yield bond funds last week were negative for the second consecutive week, and the quantum of outflows was large.
Albertsons, an American grocery company, issued junk bonds worth $1.3 billion on August 4, 2016. The senior notes were rated B3/B+ and carried a coupon of 5.8%.
High-yield bond issuance rose last week due to better yields compared to sub-zero yields in other developed countries.
Flows into investment-grade bond funds were positive for the fifth consecutive week for the week ended August 3, 2016, with net inflows of $2.5 billion.
Microsoft (MSFT) issued Aaa/AAA rated high-grade bonds worth $19.8 billion through seven parts on August 1, 2016.
Investment-grade corporate bonds worth $51.5 billion were issued in the primary market in the week to August 5, 2016. High-grade issuance was $32.7 billion the previous week.