Fidelity High Income Fund
High-Yield Bond Market Issuance Was Highest Year-to-Date
High-yield bond issuance activity increased significantly last week on a firm market condition. Issuers were in a rush to close deals ahead of Memorial Day weekend.
Why High Yield Bond Market Issuance Gained Traction Last Week
High yield bond issuance activity gained traction last week on improved Market sentiment. The total US dollar-denominated issuance of high yield debt is $60.8 billion in 2016 YTD.
Why High-Yield Bond Market Issuance Slowed Last Week
Last week brought the total US dollar-denominated issuance of high-yield debt to $61.6 billion YTD in 2016—47.0% lower compared to the same period in 2015.
Prime Security Services Issued the Most Junk Bonds Last Week
Prime Security Services is a subsidiary of Apollo Global Management (APO). It issued junk bonds worth $3.14 billion on April 20.
Numericable Issued the Most Junk Bonds in the Week to April 8
Numericable SFR is a French cable and telecommunications company. It issued dollar-denominated junk bonds worth $5.2 billion on April 6.
WDC Issued the Most Junk Bonds in the Week Ended April 1
WDC issued dollar-denominated junk bonds worth $5.2 million on March 30, 2016. It intends to use the proceeds to finance its proposed merger with SanDisk.
Intelsat Jackson Issued Most Junk Bonds in the Week Ended March 24
Continuous improvement in market conditions resulted in the highest year-to-date (or YTD) high-yield bond issuance in the primary market last week.
MDC Partners Issued the Most Junk Bonds in the Week to March 18
MDC Partners (MDCA) offers marketing and communication network services. It issued dollar-denominated junk bonds worth $900 million on March 18.
How Big Were Masco’s and First Data’s Bond Issuances Last Week?
Both Masco Corporation and First Data Corporation issued dollar-denominated junk bonds worth $900 million last week.
Junk Bond Issuance Rose as Equity Markets Rebounded
Mutual Funds such as the PIMCO High-Yield Fund Class A (PHDAX) and the Fidelity High Income Fund (SPHIX) invest in junk bonds.
Pinnacle Foods: Sole Junk Bond Issuer for the Week of January 15
Pinnacle Foods issued dollar-denominated junk bonds worth $350 million on January 12, 2016. The senior notes were rated B2/B+ and carried a coupon of 5.9%.
December 2015 Minutes: PCE Inflation May Impede Future Rate Hikes
According to the December FOMC minutes, although most participants expect inflation to be in the range of 1.7%–1.8% in 2016, the overall projections range from 1.2% to 2.1%.
Illiquidity Won’t Influence SPHIX Immediately
SPHIX isn’t under the threat of illiquidity immediately. Given its N-Q filing, even if liquidity dried up more, it wouldn’t be in trouble.
First Data Issued the Most Junk Bonds in the Week to October 30
First Data (FDC) issued junk bonds worth $3.4 billion last week. The senior notes were rated Caa1/B and carried a coupon of 7.0%.
Concordia Healthcare: Last Week’s Highest Junk Bond Issuer
Concordia Healthcare, a healthcare company focused on legacy pharmaceutical products and orphan drugs, issued junk bonds worth $790 million last week.
AerCap Ireland Capital: Best Deal for the Week Ending October 16
AerCap Ireland Capital Limited (Ireland)/AerCap Global Aviation Trust (Delaware) issued junk bonds worth $1 billion last week. They had a rating of Ba2/BB+.