© Reuters. Junk bond issuance surged in October
- via Bloomberg’s Gowri Gurumurthy
- Treasurers took advantage of plunging spreads, pricing $23B in junk bonds in October, up 18% Y/Y and the busiest October since 2014.
- Higher oil prices, strong corporate earnings, a steadily growing economy, and fading macro concerns were all positives.
- Energy yields sunk to a five-month low of 6.33% late last month, and the sector about doubled the broader high-yield index’s 0.42% advance for October.
- ETFs: HYG, JNK, DHY, HIX, PHT, HYLD, EAD, HYT, JQC, CIK, DSU, ACP, SJB, ANGL, NHS, MCI, KIO, ARDC, AIF, CIF, PHF, IVH, FHY, GGM, MPV, JSD
- Now read: High Yield Bonds: Do Not Worry About Rising Rates