High Yield Morning Update

High-yield started the week of with a negative tone yesterday with yields and spreads widening for the first time in over a week, closing off 7bps and 2bps to close at 9.27% and +779bps as oil moved lower after a strong week of trading last week. Fund flows turned mildly negative Monday with a net outflow of $92 million, coming off the first positive flow week of 2016. No new deals priced. This morning we’re opening lower again as markets are dragged lower by poor overseas earnings and growth concerns, while energy sensitive paper is trading down about a point generically on the back of a two day slide in oil prices and treasuries are rallying, pushing the yield on the US 10-year note inside 1.9% for the first time since April 2015.

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