Cracks Start To Show In High Yield As Investors Turn Cautious

The high yield new issue market came roaring back to life last week according to Bank of America’s credit strategists Michael Contopoulos and team, but despite record levels of new issuance, it appears investors are turning away from high yield credit market. Cracks Start To Show In High Yield As Investors Turn Cautious For the week to Thursday 9 March $17.3 billion of new high yield issuance was priced, the largest volume in two years. However, while the market excepted this new issuance, outflows, specifically ETF outflows, have caused spreads to widen. BOA’s high yield credit team writes: “Last week…