Eight high-yield companies tested investor appetite with new issues last week despite initial soft performance in the secondary market and big outflows from high-yield funds. Last week saw US$4.555bn from eight tranches, bringing the month's volumes to US$19.880bn and the year's volume to US$199.449bn from 360 tranches. The market suffered its biggest one-week outflow since June 2013 for the week ended on Wednesday, with US$2.384bn pulled out of high-yield funds, according to Lipper. That followed a US$1.677bn outflow the previous week, which was the biggest since August of last year, and which had already led to a more cautious tone in the market. Barclays credit strategists noted a 40bp widening in high-yield spreads over the past month, partly due to outflows, while recent new issues were noticeably weaker at the start of the week.
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