Bear Stearns High Yield Index jumps 0.97%, now up 26.94% in 2003; spread drops below 500 bps

New York, Dec. 5 - The Bear Stearns High Yield Index jumped 0.97% higher in the week to Dec. 4, pushing its year-to-date gain up to 26.94%.

The latest rise extends the current run of upward moves to six consecutive weeks; the index has recorded positive total returns in 15 of the last 16 weeks.

With the latest gain, the index's yield-to-worst spread fell below the 500 basis points mark, dropping 30 basis points to 473 basis points from 503 basis points the week before.

Similarly the yield to worst broke through the 8% level, falling 22 basis points to 7.91% from 8.13% the week before.

For a second week all 11 of the industry sectors making up the index showed gains.

The utility sector led the gains, soaring 2.32% in the seven days. The group is now up 54.81% since Jan. 1. The latest move ensured utilities held on to the number one spot among the 11 sectors.

Finance showed the smallest gain for a second week but still managed to rise 0.42%, taking its year-to-date performance to 29.21%.

Consumer non-cyclicals remains in last place for the year so far among the industry sectors with a 13.89% return after adding 0.50% in the week just completed.

The integrated component of utilities was the strongest performer among the sub-sectors making up the 11 broad groups, surging 2.99% in the week to Dec. 4. It is now up 54.85% for 2003 to date.

Meanwhile the IPP component of utilities took the number one spot for the year so far from long distance. The IPP group gained 2.42% in the week and is now up 81.11% for the year to date, while long distance added 0.49% and is up 80.37% since Jan. 1.

Textile and apparel was the weakest performer in the week just gone, losing 0.69% and extending its year-to-date loss to 5.91%, making it the only sub-sector in the red for 2003.

The index ended the week with a market value of $496.23 billion in 1,656 issues, more value but the same number of issues compared to the $493.00 billion in 1,656 issues the week before.

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