Bear Stearns index falls again; 0.53% decline in most recent week cuts 2002 gain to 2.89%

New York, May 17 - The Bear Stearns High Yield Index fell 0.53% in the week to May 16, its second consecutive drop. Its return so far in 2002 is now 2.89%.

Conspicuous among the decliners was the index's media component, at 16.09% of the total its second largest sector. This group fell 3.17% in the week, the worst performance of any of the 11 sectors that make up the index.

Within media, North American cable, which makes up 6.72% of the total index, fell 6.37% in the week.

During the week to May 16, the overall index's yield to worst increased 44 basis points to 12.02% compared to 11.58% a week earlier. The spread to worst widened 43 basis points to 757 basis points from 714 basis points.

In total, the index included 1,411 issues with a market value of $324.488 billion, fewer issues but a high market value than the previous week's 1,416 issues with a market value of $320.707 billion.

Despite the overall decline, seven of the index's 11 broad industry sectors gained in the most recent week.

As mentioned, media was the worst performer. Its 3.17% decline pushed its year-to-date performance into the read with a return of negative 2.11%.

Also dropping in the most recent week were telecommunications, down 1.41% and the worst performing sector so far this year with a 17.53% decline, transportation, which continues to be the best performer year to date at 10.59% even after its 0.08% loss in the most recent week, and utilities, down 0.80%.

Moving in the other direction, the top performer was finance, which gained 0.64% for a year-to-date return of 7.95%.

Among narrow sub-sectors, diversified programmers, part of the media group, were by far the best performer, shooting up 9.57%. However this gain contributed little to the overall index since diversified programmers are the second smallest sub-sector with just $71 million market value of bonds outstanding.

Meanwhile, insurance took the title of best performing sub-sector so far in 2002. The group added 0.98% in the most recent week for a year-to-date return of 21.35%, passing the previous holder of the top place, textile and apparel, which dropped 0.27% in the most recent period, reducing its year-to-date gain to 20.70%.

The biggest decline in the most recent week was recorded by broadband access and internet services, which fell 7.41%, taking its year-to-date loss to 36.15%. It is now the worst performing sub-sector so far this year, pushing out CLECs which are down 31.06% after adding 1.31% in the most recent week.

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