High yield was flat Monday as the market rallied into the close after a softer open to start the new week especially in energy names on the back of failed Doha talks. The yield to worst and spread on the Bank of America High-Yield Index widened 3bps/1bps closing at 7.96%/+662 on the day. The slow but steady issuance pace continued with Altice pricing an upsized $2.75 billion senior secured deal at par to yield 7.5%. Fund flows Monday were basically flat at +$23 million for the day, while the technical picture remains intact due to big inflows over the past couple months and slow primary issuance. Markets rallied overnight pushing global stocks to a three-month high as oil traded back north of $40/barrel and a few European corporate earnings came in ahead of expectations. The rally is spilling over to US market this morning with equity futures higher and high-yield opening up ¼ – ½ of a point generically in early trading with energy credits leading the way.

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.