- The Bloomberg Barclays High Yield Index closed last week at just a 330 basis point spread to Treasurys, with a yield-to-worst of 5.34%.
- Probing further, BB credit spreads moved to a 10-year low, with yields at a four-year low. CCC spreads fell to three-year lows.
- While there were $450M of cash outflows from retail funds, real money appetite for paper - the junkier the better - showed no signs of fading.
- Energy, of course, makes for a nice chunk of high yield, and sentiment there is fairly strong as oil prices threaten to rise to the mid-$50s.
- Source: Bloomberg's Gowri Gurumurthy
- ETFs: HYG, JNK, DHY, HIX, PHT, HYLD, EAD, HYT, JQC, CIK, DSU, ACP, SJB, ANGL, NHS, MCI, KIO