High-yield funds had massive outflows for the week ending Dec 9th totaling a whopping $3.5 billion according to Lipper Data. This marks the largest one-week withdrawal since the record $7.1bn outflow 70 weeks ago (the week ended Aug 6, 2014). Fixed income outflows were not limited to the high-yield market this week as investment grade funds had their third straight weekly outflow totaling $1.55 billion and loan funds lost money for the 20^th consecutive week totaling $581 million. The yield to worst on the Bank of America High-Yield Index continue to move higher yesterday closing at 8.47%, 4bps wider on the day, while the spread held steady at +671bps. Treasury markets are better this morning pushing the yield on the US 10-year note inside 2.20% after trading briefly over 2.30% last week while commodity weakness continues to plague the market. High yield is opening the day down .50-1 point of a point generically after yesterday’s weak session that saw the market down generically .25-.5, as liquidity remains tight and buyers remain in hiding. No deals have priced this week due to market conditions.

The Bank of America Merrill 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.  Index data sourced from Bloomberg. Yield referenced is the yield-to-worst and spread referenced is the spread-to-worst.