Deals and flows analysis in the high-yield bond market
High-yield bond issuance activity slowed down last week after recording the highest YTD (year-to-date) volume in the previous week. According to data from S&P Capital IQ/LCD, dollar-denominated high-yield debt amounting to $4.6 billion was issued in the week ending April 15. In the previous week, high-yield issuance stood at $10.9 billion—the highest YTD issuance. The number of transactions fell to seven last week from eight in the previous week.
Last week brought the total US dollar-denominated issuance of high-yield debt to $52.0 billion in 2016 YTD. This is 55% lower compared to the same period in 2015.
High-yield debt is tracked by mutual funds like the Prudential Short Duration High Yield Income Fund – Class A (HYSAX) and the TIAA-CREF High-Yield Fund – Retail Class (TIYRX). It’s also tracked by ETFs like the SPDR Barclays Capital High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond Fund (HYG).
Purpose of the deals
Seven deals were priced last week. Five for refinancing, one for general corporate purposes, and one for the spin-off.
In the next part, we’ll analyze deals priced last week and pricing trends.