North America Corporate Credit - Distressed, High Yield and Leveraged Loans Strategy

High-yield bond yields surged 36bp to 8.10% and spreads widened 9bp over the past week to a 5-week high 312bp as investors absorbed strong economic data, a spike in rates, and the 2nd most active week for capital markets since April. This week's $17.6bn of issuance boosted September issuance to $38.2bn, including the 2nd largest non-refi issuance ($24.2bn) since June 2020. The September US Flash PMI was the highest since July 2021, consistent with ~5% annualized GDP growth, though input cost inflation posted its largest monthly rise since 2020;