The Fed's recent bond-buying bulletin stoked already red-hot conditions for the U.S. high-yield market, contributing to record-smashing volume of issuance last week and a monthly record for June.
Deals that printed on Friday for Eldorado Resorts Inc. ($5.2 billion) and Caesars Entertainment Corp. ($1 billion), backing the combination of the two entities, boosted last week’s issuance to $23.53 billion, blowing past the prior record of $21.6 billion for the week to Aug. 13, 2010, per LCD, which began tracking this asset class in 2005.
Last week's 31 tranches of new debt propelled the June issuance total (through June 19) to $47.4 billion. The prior full-month peak for June was $29.3 billion in 2014.
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The $700 million issue of senior notes for CommScope Holding Co. Inc. on June 22 pushed high-yield bond volume this month to $48.1 billion, surpassing the prior full-month record of $47.7 billion, recorded in September 2013.
Blockbuster June totals follow on May’s $43.8 billion figure — a record total for a May period.
Volume through June 22 in 2020 is $201 billion, 65% ahead of the 2019 pace, and already more than the roughly $169 billion that issuers placed over all of 2018.
This article was written by John Atkins, who covers high-yield and investment-grade bonds for LCD.
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