High-yield issuers comfortably sailed through heightened volatility across global markets last week, bringing to market US$4.6bn of supply before the typical two-week lull ahead of Labor Day. A diverse group of borrowers sought to raise funds in the market, from funeral services company service corporation international, which on Monday raised US$300m through a reopening of its 5.375% 2024s to repay existing debt, to cereal maker post holdings, which on Wednesday priced a US$1.2bn two-part bond, the largest trade of the week. While China's unexpected decision on Tuesday to allow the renminbi to weaken sent ripples across equity and bond markets, causing spreads on the main credit indices to widen, concerns in the high-yield market were somewhat tempered by a generally stronger focus on the domestic US market and smaller direct exposure to China.
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