Both the S&P U.S. Issued High Yield Corporate Bond Index and the S&P/LSTA U.S. Leveraged Loan 100 Index ended the month of May with total returns under 1%. The indices returned 0.99% and 0.76% respectively month-to-date. Numerous new high yield issues continued to come to market in names such as Audatex North America Inc., Baytex Energy, Cedar Fair, Interface Master Holdings Inc. and Precision Drilling. Year-to-date the S&P U.S. Issued High Yield Corporate Bond Index has returned 4.69% while loans is lagging behind returning 1.91%.
Last week the S&P U.S. Preferred Stock Index (TR) returned 0.73% for the week adding to the month-to-date return of 1.36% and topping out at a year-to-date return of 10.40% for the month. Comparing this hybrid bond/equity product to the S&P 500, the performance outshines the equity index which returned 2.35% for May and 4.97% year-to-date on a total rate of return basis.
This article was written by Kevin Horan, director fixed income indices, S&P Dow Jones Indices.
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