Nov 19 2013 - Rate Brief
- Credit markets have been a bit more cautious despite as equity markets climb to record highs.
- Recent buying has run the S&P 500 up to 1800 and the Dow Jones Industrial Average above 16,000, but the same exuberance has not translated to fresh highs in the high yield space.
- The BofA/ML High Yield Master II Index saw an 185bp surge to almost 7.00% during the May/June selloff, and has since retraced roughly two-thirds of that move as the return to risk has caused money to seek higher returns.
- The 7.00% area remains key as resistance, coinciding with what was previously all-time lows.
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