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Junk bond spreads tighten, yields drop as investors wait for supply to resume

Published 07/10/2018, 10:26 AM
© Reuters.  Junk bond spreads tighten, yields drop as investors wait for supply to resume
  • Junk bonds tightened the most in four weeks across all ratings, while CCCs close at three-week low, Bloomberg reports.
  • Commitments were due yesterday for Thomson Reuters (NYSE:TRI) $5.5B equivalent senior bridge loan as the market waits for the notes offering after Labor Day to fund the company's buyout.
  • Low supply boosted yield, with $15B priced in June, the lowest amount for that month since 2013, Bloomberg says.
  • Supply is down 23% YTD; CCCs with YTD returns of 3.40%, outperformed BBs and single Bs as well as investment-grade bonds, which were down 2.8% in the same time period.
  • Previously: Blackstone (NYSE:BX) selling two jumbo loans to pay for Thomson Reuters F&R deal: Reuters (June 29)
  • Now read: Domo - Not Tempted To Buy The 'Discount'


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