Strong demand continued to fuel the junk bond market last week. Junk bond issuers had priced $2.6 billion of new issues by Friday, bringing the year-to-date total to $25.1 billion. Inflows to high-yield mutual funds totaled $283.4 million last week, according to AMG Data Services, bringing year-to-date flows to $3.1 billion.
Roughly $8.9 billion of new issues are on the forward calendar and set to price in the next few weeks. "It seems the market has found an outlet for all of the cash buildup that they have experienced," said Richard Miller, head of high-yield research at BancBoston Securities. "A flood of new issuance has kept the buy-side investors focused on roadshows."