High yield bonds are opening with a positive tone again today and flows into the asset class continue at about a $100 million per day clip, despite the indices rapidly approaching 5.5%.  Through 17 trading days of 2013 the Bank of America High yield Index has already returned 1.81%, while compressing 46bps in yield to 5.62% and 43bps in spread to 480bps over Treasuries. Only one high yield new issue priced yesterday, but the calendar remains full, demand robust, and there is no reason to expect deals will not continue to get done. Equities continue to trade with a positive tone this morning, the HY19 High Yield Credit Index is opening flat, while high yield cash bonds continue to be well bid.

The HY 19 Index (Markit CDX North America High Yield Index) is composed of 100 non-investment grade entities, with all entities domiciled in North America.  This index rolls every six months, in March and September.  The Bank of America Merill Lynch High Yield Index monitors the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.  Data sourced from Bloomberg.