In the third quarter of 2016, the BofA Merrill Lynch US High Yield Constrained Index continued its strong recovery, gaining 5.49% and bringing its year-to-date total return to 15.32%. The high-yield market is on pace to post its highest annual total return since emerging from the global financial crisis in 2009. Senior loans had a strong quarter as well, as the S&P/LSTA Leveraged Loan Index generated a 3.08% return bringing its year-to-date total return to 7.72%. The total return for risk assets in the high-yield bond and senior loan markets compare favorably to equity market total returns as measured by the S&P 500 index which was up 3.85% in the third quarter and was up 7.84% year-to-date at quarter end
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