The Week In Review: High Yield Corporate Bonds

Includes: FTR, HYG, JNK, PHB, S
by: The Financial Lexicon

Here's the week in review for the high yield corporate bond market:

During the trading week of January 30th, $30.037 billion of publicly-traded high yield corporate bonds (NYSEARCA:HYG) changed hands, versus $25.236 billion the week prior. Advancers outpaced decliners from Tuesday through Friday, and the ratio of advancers to decliners ended the week just off its high. The heaviest dollar volume of the week was on Friday, the same day as the lowest number of decliners. The dollar volume traded increased each day and closed the week at its high of $7.704 billion.

Below is a table outlining last week's pertinent bond-specific information from the high yield corporate bond (NYSEARCA:JNK) market:

High Yield 1/30/2012 1/31/2012 2/1/2012 2/2/2012 2/3/2012
Advancers 615 701 792 653 702
Decliners 647 550 516 527 459
Advancers / Decliners Ratio 0.951 1.275 1.535 1.239 1.529
Unchanged 74 97 71 127 74
Dollar Volume (Billions) $3.297 $5.196 $6.220 $7.620 $7.704

In terms of the most actively traded issues, debt from the lowest reaches of non-investment grade dominated again this week. Two companies among the top two most actively traded issues from each day, ComEd Financing III and Frontier Communications (NYSE:FTR), were exceptions. Their debt is rated Ba1/BB+ and Ba2/BB by Moody's (NYSE:MCO) and S&P respectively, much higher than their counterparts on the list. Other well known companies with corporate notes appearing in the top 10 most actively traded high yield notes at some point during the week include: Sprint Capital Corp. (NYSE:S), Chesapeake Energy (NYSE:CHK), MGM Resorts International (NYSE:MGM) and CIT Group (NYSE:CIT).

Below is a table outlining the most actively traded and second most actively traded high yield corporates (NYSEARCA:PHB) of the week, broken down by day:

High Yield

Most Actively Traded

Second Most Actively Traded

Monday, 1/30/2012

ComEd Fin'g III, CUSIP: 20035AAA2


CUSIP: 466112AC3

Tuesday, 1/31/2012

Energy Future Intermediate, CUSIP: 29269QAA5

Frontier Communications, CUSIP: 35906AAF5

Wednesday, 2/1/2012

First Data Corp., CUSIP: 319963AT1

Lehman Brothers (OTC:LEHMQ), CUSIP: 5252M0BZ9

Thursday, 2/2/2012

Harrah's, CUSIP: 413627BM1

TXU Corp.,

CUSIP: 873168AQ1

Friday, 2/3/2012

TXU Corp., CUSIP: 873168AQ1

First Data Corp.,

CUSIP: 319963AV6

Disclaimer: The underlying data mentioned in this article came from FINRA's Trade Reporting and Compliance Engine (TRACE). I cannot vouch for the accuracy of FINRA's data.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I am long one CHK CUSIP.