After a huge calendar in the week prior to Thanksgiving the market has essentially closed down the past two weeks with just $13.8 billion priced. The weighted average maturity continues to lengthen as BBB credits look to lock in attractive long rates even as the Treasury market backs up. For their part, investors appear to have a strong appetite still for longer-dated paper. One other trend worth noting is the pickup in high yield issuance. Since the bond and equity markets have started pricing in a robust first half recovery in the economy, the high yield market has been well bid, retracing about 80% of its post 9/11 losses. This strength has been further supported by flows into high yield funds, which totaled about $1.5 billion in the previous two weeks.
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