Morning Commentary: High-yield funds see mixed flows; primary market remains dormant

By Paul A. Harris

Portland, Ore., Aug. 29 – The major currencies new issue high-yield bond market was dormant and was expected to remain so until the Labor Day weekend concludes on Sept. 4, whereupon a substantial pipeline of deals is expected to begin coming to market.

Syndicate bankers continue to project September new issue volume of around $25 billion.

September might see an early ramp-up, a syndicate banker said on Tuesday. However, the likelihood is that the primary market won't be running full bore until the Sept. 10 week.

The Nordic new issue market remains open heading into summer’s end.

Ship Finance International Ltd. was scheduled to begin a series of meetings with fixed income investors on Tuesday ahead of an expected five-year krone-denominated senior unsecured bond.

Tuesday fund flows

The daily cash flows of the dedicated high-yield bond funds were mixed on Tuesday, a trader said.

High-yield ETFs sustained $82 million of outflows on the day.

However actively managed funds saw $65 million of inflows on Tuesday, the trader added.

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