High yield bond issuance for the week ended Nov. 14 totaled $7.5 billion, down from $10.5 billion the previous week, as institutional investors trend toward higher-rated components of the speculative-grade market (those in the double-B segment).
With the recent activity, YTD high yield volume totals $294 billion, on pace with the $293 billion at this time in 2013.
Of note this week: Scientific Games priced a $3.15B offering backing its purchase of Bally Technologies. The deal was under scrutiny, as a month earlier the lottery/gaming concern shelved a bridge loan after that credit stalled in syndication, amid significant market turbulence, says LCD’s Joy Ferguson. As well, the larger portion of the issue - $2.2 billion – was rated single-B.
The moderately busy week comes as investors continue to pour money into the high yield market. For the week ended Nov. 12, U.S. high yield funds saw an $890 million net cash inflow, the fourth straight significant gain, according to Lipper.