.jpg)
Weekly Market Summary
Feb. 6 to Feb. 10, 2023
Extra Credit*
• Despite the relative upturn to start the year, January was the slowest start for the high-yield primary market in four years at $20.6 billion. The peak for the month remains at $51.9 billion (Jan ’21).
• In January, 35% of the new high-yield bond supply came with BB ratings, while a further 25.2% of the supply straddled the BB/B divide. Single-B bonds represented 34.2% of prints, while CCC paper accounted for just 2.8%.
• Current probabilities for the fed funds rate upper limit per CME FedWatch to finish at either 5.25% or 5.75% post May FOMC meeting, so either two 0.25% or two 0.50% hikes in the Fed’s benchmark rate stand at 74.2% or 4.9%.
• The trailing 12-month default rate for high yield bonds and bank loans finished 2022 at 1.83% and 1.82%, well below their long-term average of 3.2% and 3.1%.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index.
For Financial Professional Use Only
Past performance does not guarantee future results. Index performance is not indicative of fund performance.
All investing involves risks including the possible loss of the principal amount invested.
Pacific Life Insurance Company is the administrator for Pacific Funds. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from PacificFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Pacific Funds are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third parties. Pacific Funds refers to Pacific Funds Series Trust.
Mailing address: P.O. Box 9768, Providence, RI 02940-9768 (800) 722-2333 • www.PacificFunds.com
