Bear Stearns High Yield Index down 1.67% for month to June 28, trims 2007 return to 3.14%

By Paul A. Harris

St. Louis, June 29 - The Bear Stearns High Yield Index gave up 1.67% on the month to June 28, a 0.47% drop from the previous week. With one market session remaining for the month of June, the year-to-date return stood at 3.14%.

During the most recent week, the yield to worst increased by 17 basis points to 8.12%. The yield-to-worst spread, at 312 bps, widened by 0.24 bps since June 21.

With all but one market session played out, all 12 industry sectors posted negative returns for the month of June.

The technology sector, which has no sub-sectors, took the steepest dive for the month to June 28, down 2.47%. Its year-to-date return ended the period at 1.90%.

The transportation sector gave up the least distance. To the nether reaches of June transportation's negative 0.18% return renders it the index outperformer for the month, as well as for the year to June 28, with a 6.16% return thus far in 2007.

Among the, sub-sectors the homebuilders component of the consumer cyclical sector sustained the greatest amount of damage during June, dropping 3.95%. Hence, with the calendar nearing the halfway point of 2007, the homebuilders component bears the dubious distinction of being the first index sub-sector to dip into the red for the year to date at negative 1.31%.

The health care sector's services-diagnostic component, meanwhile, remains the year-to-date outperformer among the sub-sectors, at 6.24%. With its 1.08% return for the month to June 28, it was the outperformer during that period.

Meanwhile, all 12 industry sectors remain in positive territory for the year to June 28.

In addition to the above-mentioned transportation sector, which is up 6.16%, three other sectors have generated returns of greater than 4% thus far into 2007: media, at 4.80%, but down 1.07% for June; consumer non-cyclical at 4.11%, but off 1.49% for June; and health care at 4.07%, but down 1.81% during June.

On June 28, the index had a market value of $601.44 billion, $3.85 billion lower than the previous week. The issue count, meanwhile, grew by 17 issues to 1,567.

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