High Yield & Bank Loans

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High Yield and Bank Loans Commentary 3Q-2021

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MetLife Investment Management Public Fixed Income Team
SEP 30, 2021

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HY Market Review

The broad high yield (HY) market’s resiliency was on display during the quarter. Instability in rates accelerated and markets experienced bouts of volatility amid the spread of the Delta variant, inflationary concerns, and China’s debt crisis. The ICE Bank of America Merrill Lynch U.S. High Yield Constrained Index returned 0.95% over the quarter, while the yield to worst increased 23 basis points to 4.10% by quarter-end1 . The Bloomberg US HY index returned 0.89% over the quarter. Spreads widened 21 basis points to 289 basis points, and the yield to worst on the index increased 29 basis points to 4.04% by quarter-end2.