TIAA-CREF High Yield Fund
High-Yield Bond Market Had a Strong Performance Last Week
High-yield bond issuance activity was strong last week. Dollar-denominated high-yield debt amounting to $10.1 billion was issued in the week ending April 22.
Why Did High-Yield Bond Issuance Fall Last 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.
High Yield Bond Issuance Hit 2016 Record Last Week
High yield bond issuance surged last week and hit its highest level in 2016 yet due to continued growth in volume.
Why High Yield Bond Issuance Recorded Its Highest Level in 2016
High-yield bond issuance surged last week and was recorded at its highest level in 2016. This was due to recent momentum in the primary market.
High-Yield Bond Issuance Recorded Is the Highest in 2016 YTD
High-yield bond issuance surged last week and recorded its highest level in 2016 due to improved primary market sentiment.
High-Yield Bond Issuance Fell after the FOMC’s Dovish Statement
Last week brought the total US dollar-denominated issuance of high-yield debt to $24.3 billion in 2016 YTD. It’s 71.0% lower than the same period in 2015.
High-Yield Bond Issuance Rose after Equity Markets Stabilized
High-yield bond issuance rose last week, with three deals being priced as stock markets rebounded on positive corporate earnings results.
Investors in Junk Bond Mutual Funds Should Worry about Liquidity
If liquidity declines for junk bonds, the liquidity risk premium would rise. This would increase the coupon set on the bond. It will raise the borrowing cost for a company.
Assessing Liquidity Risk in the Corporate Bond Market
Liquidity risk has fallen from levels seen during the financial crisis of 2008. Since 2011, liquidity risk in the corporate bond market has decreased.
Why Bond Market Liquidity Has Been Making Headlines
Liquidity in bond markets is crucial because this market provides sources for the government and corporates to raise money for their projects and ventures.