Equities were beaten up for most of the day yesterday on negative headlines coming out of the EU summit before rallying into the close and erasing most of the day’s losses on speculation Germany might be more willing to come to terms. While equities were selling off, the high yield market was improving throughout the day on steady yield appetite and money flows in to the asset class. The Bank of America High Yield Index ended the day yielding 7.42% and with a spread over Treasuries of 652bps, 3bps tighter and unchanged on the day, respectively. For performance the BAML HY index was better by 0.11% bringing the year-to-date total to 6.67%. Global markets are rallying this morning after European leaders revealed plans to help alleviate concerns over bank failures. The HY18 synthetic index is up 1 point this morning, and cash names are up about the same in general.