The high-yield market continued to improve this week, despite weaker stocks, amid improving technicals, accommodative central banks, fading concern around global growth and after oil hit a new 2016 high at Thursday’s close. The yield to worst and spread on the Bank of America High-Yield Index (BAML) tightened 12bps/5bps to close at 7.61%/+624bps, just off of the 2016 lows set Thursday afternoon. The performance gap between the high-yield asset class and equities expanded this week after equities moved lower and high-yield bonds put up another strong weekly performance total.

High-yield retail mutual and exchange traded funds reported inflows for the week ending 4/27 totaling $297 million, the fourth consecutive weekly inflow, and the 10^th inflow reported in the past 11 weeks. After the latest positive reading, the year to date inflow now stands at $9.7 billion. High-yield issuance continued at a strong pace over the past week with nine deals for $6.25 pricing, making it the fourth busiest week year to date. April closed out as the busiest month for issuance since last May, with 31 deals for $31.355 billion pricing. Year to date the market has priced 85 deals for $68.42 billion.

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.