Renewed Growth in High Yield Market
• The US High Yield Fixed Income market has recently increased in size, after 6 years of modest decline, in sharp contrast to the very rapid growth of Leveraged Loans and Private Debt markets
• There has been a record new issuance year-to-date (August 2020) of relatively high quality bonds, with many secured bond deals
• Much of the additional High Yield market growth due to significant “fallen angels” (downgraded IG bonds)
• All of these trends have led to a 25-year low in HY credits rated B- or lower
Source: BofA Merrill Lynch Global Research, BofA Merrill Lynch Bond Indices, S&P LCD, as of July 31, 2020.
Past performance is not indicative of future performance.
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