Markets stalled into the close yesterday after a strong start as headlines surrounding the immigration ban continued to cloud optimism around infrastructure and growth that drove the Trump rally since his election. The high-yield market was little changed on the day with the yield-to-worst/spread on the Bank of America High-Yield Index closing 1bp/2bps wider at 5.78%/+393bps. Primary activity cooled a bit yesterday with just two deals for $1.45 billion pricing taking the week’s total to $4.275 billion. So far February’s 15 deals for $10.245 billion in proceeds is already up by 10% from last February’s total issuance. Lipper is estimating inflows in mutual and exchange traded funds of $1.1 billion WTD (reporting week runs Thursday to Wednesday) after a two-week stretch of outflows. High-yield mutual and exchange traded funds have reported a net inflow of roughly $7 billion since the US election in November. Commodity markets continued to weaken after EIA data showed a larger than expected build in US oil stockpiles as US oil production continues to come online with higher prices, while OPEC continues its effort to cut. WTI closed at $52.17, down 1.6% on the day. US markets are moving lower this morning with equities opening in the red while high-yield and oil continue to roll over in early trading. Focus remains on earnings and the four deals slated to price this afternoon.
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