HY issuance recovers but net new credit largely absent Spreads in the US high yield market are near the tightest levels ever, providing a constructive read on the US economy. Tight spreads and lower rates have led to a pickup in HY issuance, which recently approached more normal levels, but that has since slowed as rates moved up. And much of the issuance seen has been used for refinancing. The positive is that there could be another leg for issuance as companies sell debt to finance capex or acquisitions. This is the Fed transmission mechanism at work. Oleg discusses the impediments to such a shift and the implications of getting the election behind us. We also discuss private credit, how rapid growth in that market impacts high yield and where Oleg sees the best opportunities.   You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2024 Bank of America Corporation. All rights reserved.