Yields continued to drop across all sectors and ratings as funds saw more daily inflows and oil prices traded higher once again. The yield and spread on the Bank of America High-Yield Index tightened for the 9^th consecutive session closing at 8.54% and +703, respectively, each down 5bps for the day. Monday’s mutual and exchange traded fund flows were +$566mm, as money continues to be allocated to the asset class. Overnight, a slump in Chinese exports dragged commodities lower and brought the worldwide equity rally to a halt. This morning high-yield is opening flat to lower in sympathy with declining equity markets. One new deal was announced this morning for Level 3 set to price $500m 10 year notes today to take out their 7% 2020 bonds.

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.  Daily fund flow information sourced from J.P. Morgan.